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个股公告正文

万 科B:2013年年度报告(英文版)

日期:2014-03-07附件下载

                                         2013 Annual ReportImportant Notice:The Board of Directors, the Supervisory Committee and the Directors, members of the Supervisory Committee andsenior management of the Company warrant that in respect of the information contained in this report, there areno misrepresentations or misleading statements, or material omission, and individually and collectively accept fullresponsibility for the authenticity, accuracy and completeness of the information contained in this report.Chairman Wang Shi, Director Yu Liang, Director Xiao Li, Director Wei Bin, Director Chen Ying, IndependentDirector Qi Daqing, Independent Director Zhang Liping,Independent Director Hua Sheng and IndependentDirectorElizabeth Law attended the board meeting in person. Deputy Chairman Qiao Shibo was not able toattend the board meeting in person due to business engagements and had authorised Director Wei Bin to representhim and vote on behalf of him at the board meeting.Director Sun Jianyi was not able to attend the board meetingin person due to business engagements and had authorised Director Yu Liang to represent him and vote on behalfof him at the board meeting.The Company’s proposal on dividend distribution for the year 2013: Based on the number of shares on the recorddate for dividend distribution, a cash dividend of RMB4.1 (including tax) will be distributed for every 10 existingshares held.Chairman Wang Shi, Director and President Yu Liang, and Executive Vice President and Supervisor of FinanceWang Wenjin declare that the financial report contained in the annual report is warranted to be true and complete.
    To Shareholders……………………………………………………….……………………….……………            2
    Corporate Information …………………………………………………………………..…………………               3
    Accounting and Financial Highlights…………………………………………………………..…………           3
    Directors’ Report…………………………………………………………………………………………….. 4
    Significant Events …………………………………………………………………………………………… 51
    Change in Share Capital and Information on Shareholders…………………………………………… 61
    Directors, Members of Supervisory Committee, Senior Management and Employees….…………. 65
    Corporate Governance …………………………………………………………………………………….. 74
    Report of Supervisory Committee ………………………………………………………………………… 78
    Financial Report ……………………………………………………………………………………………. 80
                                                      Page 1
    I.      To Shareholders
    2013 was the final year of Vanke’s third 10-year development plan, giving way to the start of the Company’sfourth stage of 10-year development in 2014. Macro development of China’s property industry in the past decadehad enabled various property developers to make magnificent accomplishments. Vanke has grown from a minorcompany with less than RMB10 billion annual sales to the world’s largest property developer. Enlisted as one ofthe Top 500 private enterprises in China published by All-China Federation of Industry & Commerce in August2013, Vanke ranked the ninth in terms of operating revenue, and second in terms of tax payment.
    Looking back at the Company’s last 10 years, we still firmly believe that the fundamental of Vanke’sachievements is its perseverance with integrity and down-to-earth approach. Shortcuts may lead to temporarysuccess, but a corporation can only sustain long-term prosperity by upholding its integrity and down-to-earthapproach.
    Espousing integrity means honouring commitment and respecting the law, as well as abiding by basicbusiness principles. The existence of a corporation is to create value for society. This includes better addressingcustomers’ needs, generating return for shareholders, providing employees with career development opportunities,as well as embracing the nature and environment, and protecting the interests of stakeholders.
    It is rather difficult to have an accurate future forecast. The market has yet to reach a consensus on itsprospects, and many have taken a more pessimistic view. Dreams nurtured in the mobile internet era are likespectacular fireworks, bright and dazzling. In the face of a future that cannot be predicted with certainty, it isobviously dangerous to remain arrogant and indifferent based on past success. However, overreaction without afocus, or giving up one’s initiative may also put a corporation on a wrong track.
    In the past year, we have devoted much of our resources to learn about the mobile internet. We can onlyunderstand new ideas by embracing them with an open mind, and only with true understanding, can wedetermineto what extent we should be involved.
    We believe the Internet will change the world, and organisations that cannot adapt to this change will beeliminated. But in our opinion, identifying the ―invariable‖ behind the change is more important than realising thechange itself.
    We believe providing quality services to customers and creating value for customers are enduring businessprinciples, and the Internet brings us closer to our customers by delivering more effective tools which help us tobetter understand the minute details of customers’ requirements and to swiftly adapt to the change in their needs.
    We believe that good product price-performanceremains the core of competitiveness, and it will becomemore obvious and significant in the future with improved transparency in the industry chain andincreasedaccessibility and availability of information.
    We concur that perfection is a key characteristic of the Internet era, and it can be achieved only throughstaying focus. Professionalism is what Vanke has been pursuing since its establishment.
      We can still see that the process of urbanisation in China is far from completion. Although the arrival of theInternet age is opening a new chapter in world’s history, China’s urbanisation and modernisation are having noless significant impact on the world’s development. We should therefore attach equal significance to such progress.
    As the saying goes, one should be settling down and be able to make some accomplishment at the age of 30.Vanke, on its 30th anniversary, is still a young company, despite the fact that we have been labelled as a traditionalcompany in a traditional industry. We do not intend to argue against this as it is our firm belief that clothing, food,housing and transportation are the basic necessities of mankind. These basic needs succeed from generation togeneration, and as time goes by they would only have to be better satisfied.
      When a new age begins, traditional corporations should try to improvetheir existing operations byunderstanding the new rules, looking for new partners, and leveraging new instruments, rather than depart fromtheir familiar domain.
    And this is exactly our approach.
                                                       Page 2II. Corporate Information1.Company name (Chinese): 万科企业股份有限公司
    Company name (English): China Vanke Co., Ltd. (―Vanke‖)2. Statutory representative: Wang Shi3. Secretary of the Board: Tan Huajie
    E-mail address: IR@vanke.com
    Securities Affairs Representative: Liang Jie
    E-mail address: IR@vanke.com4.Contact address: Vanke Center, No. 33 Huanmei Road, Dameisha, Yantian District, Shenzhen, the
    People’sRepublic of China5.Telephone number: 0755-25606666
    Fax number: 0755-255316966.Registered address: Vanke Center, No. 33 Huanmei Road, Dameisha, Yantian District, Shenzhen, the People’s
    Republic of China
    Postal code: 518083
    Office address: Vanke Center, No. 33 Huanmei Road, Dameisha, Yantian District, Shenzhen, the People’s
    Republic of China
    Postal code: 5180837.Website: www.vanke.com
    E-mail address: IR@vanke.com8. Media for disclosure of information: ―China Securities Journal‖, ―Securities Times‖, ―Shanghai Securities
    News‖, ―Securities Daily‖ and an English publication in Hong Kong
    Website for publication of annual reports:www.cninfo.com.cn9.Place for annual report collection: The Office of the Company’s Board of Directors10. Stock exchange on which the Company’s shares are listed: Shenzhen Stock Exchange
    11. Company’s share abbreviation and stock codes on the stock exchange:           Vanke A, 000002
                                                                              Vanke B, 20000212.First registration date of the Company: 30 May 1984; location: Shenzhen
               Date of change in registration: 13 April 2010; location: Shenzhen13. Corporate legal person business registration no.: 440301102900139
    14. Taxation registration code:            Local taxation registration code: 440300192181490
                                    State taxation registration code: 44030019218149015. Organisation code: 19218149-016. The name and address of the certified public accountants appointed by the Company:
      KPMG Huazhen (Special General Partnership):
      8/F, Office Tower E2, Oriental Plaza, 1 East Chang An Avenue, Beijing
      Accountant-in-charge:Li Wanwei, Wen Huaxin
    III.     Accounting and Financial Highlights1. Three-year financial information summary (Unit: RMB’000)
                                              2013               2012           Change              2011
    Revenue                                      127,453,765        96,859,914       31.59%              67,709,396Share of profits less losses of associates
                                                  999,398           889,787        12.32%               643,988and joint ventures
    Profit before income tax                      27,847,233         25,697,537        8.37%            19,490,060
    Income tax expense                            (9,549,684)      (10,034,949)       -4.84%            (7,890,454)
    Profit for the year                           18,297,549         15,662,588       16.82%             11,599,606
                                                     Page 3Profit attributed to non-controlling
                                                      (3,179,000)    (3,111,406)         2.17%            (1,974,731)shareholdersProfit attributed to Equity shareholders
                                                      15,118,549     12,551,182         20.46%             9,624,875of the Company
    Basic earnings per share                                   1.37           1.14        20.17%                   0.88
    Diluted earnings per share                                 1.37           1.14        20.17%                   0.88
    Dividend per share                                         0.41           0.18       127.78%                   0.132. Impact of IFRS Adjustments on Net Profit (Unit: RMB’000)
                                              Items                                Net profit for 2013
                As determined pursuant to PRC accounting standards
                                                                                             15,118,549
                As restated in conformity with IFRS
                                                                                             15,118,549IV. Directors’ Report1. Management Discussion and AnalysisChanges in market environment, and the Company’s perspectiveDuring the year under review, sales area and sales amount of commodity housing in the country amounted to1,157,000,000 sq m and RMB6.77 trillion respectively, representing year-on-year increases of 17.5% and 26.6%respectively. While the annual growth rates were higher than those of the previous year, growth rate of sales areaof commodity housing for the first, second, third, and fourth quarter of 2013 was 41.2%, 23.8%, 14.9% and 7.2%respectively, indicating a decelerating quarterly growth rate, which was mainly due to the comparative figures of2012.During the year under review, the area of new residential properties sold in the 14 major cities (Beijing, Shanghai,Shenzhen, Guangzhou, Tianjin, Shenyang, Hangzhou, Nanjing, Chengdu, Wuhan, Dongguan, Foshan, Wuxi, andSuzhou) increased by 12.5% year-on-year. Approved pre-sales area of new housing was 20.4% higher than that of2012. Since May 2013, the ratio of 3-month moving average sales area of commodity housing to approved pre-sales area of new housing in the 14 cities had stayed below 1. Except for certain cities, sufficient new housingsupply had led to relatively rational supply-demand relationship in most of the major cities. As at the end of 2013,new housing inventory in the abovementioned cities amounted to 128,000,000 sq m, up from 116,000,000 sq m asat the end of 2012.The duration for the market to absorb housing inventory was 10.4 months. Relatively sufficientinventory had facilitated smooth operation of the market.During the year under review, investment in residential property development in China recovered from a slump in2012. Completed residential development investment showed a year-on-year increase of 19.4%, representing an 8percentage points increase from the growth rate of 2012. However, when compared with the average annualgrowth rate of 23.9% in the past 10 years, the increase in residential development investment in 2013 wasrelatively small.The floor area of new housing starts had stopped falling (which started in 2012) and posted a year-on-year growth of 11.6%. However, in absolute terms, the floor area of new housing starts in 2013 was merelyclose to that of 2011, indicating a rebound from the fall in 2012.During the year under review, the land market in the third and fourth-tier cities of China was stagnant, while somepopular cities had seen relatively competitive land auctions. In the 16 cities, namely Shenzhen, Guangzhou,Dongguan, Foshan, Shanghai, Hangzhou, Nanjing, Suzhou, Ningbo, Beijing, Tianjin, Shenyang, Dalian, Wuhan,Chengdu, and Chongqing, the site area supplied and sold grew by 9.1% and 15.8% respectively from those of theprevious year.Land transactions continued to be active in major cities where property developers enlarged theirmarket coverage, leading to approximately 40.6% of land lots changed hands with a price premium, up by 14.5percentage points from that of 2012. There is the need for the land market of certain popular cities to return torationality.2013 operating results and analysisDuring the yearunder review, the Company achieved stable growth in operating results by adhering to its end-useroriented product positioning and proactive sales promotion.In 2013, the Company realized a sales area of 14,899,000 sq m and a sales amount of RMB170.94 billion,representing year-on-year increases of 15.0% and 21.0% respectively. The sales amount remained an industry
                                                            Page 4record high.By geographical segment, the Company realised a sales area of 4,299,000 sq m and a sales amount of RMB52.39billion in the Guangshen Region surrounding the Pearl River Delta; a sales area of 3,397,000 sq m and a salesamount of RMB46.05 billion in the Shanghai Regionsurrounding the Yangtze River Delta; a sales area of4,054,000 sq m and a sales amount of RMB45.40 billion in the Beijing Region surrounding the Bohai Rim; a salesarea of 3,149,000 sq m and a sales amount of RMB27.10 billion in Chengdu Region, which comprises core citiesof Central and Western Region.A majority of the Company’s products were small and medium sized ordinary commodity housing units, with91.5% of units below 144 sq m.Satisfactory sales momentum wasmaintained during the year under review, and thesubscription rate of projects in their launching month remained at approximately 60%.In 2013, the Company realised a booked area of 12.31 million sq m and booked revenue of RMB124.97billion,representing increases of 36.9% and 31.0% year-on-year respectively. In 2013, the Company’s revenue amountedto RMB127.45billion and net profit was RMB15.12 billion, representing increases of 31.59% and 20.5%year-on-year respectively.The average booked price of the Company’s property business was RMB10,152 per sq m, representing a 4.3%drop from that of 2012. The booked gross profit margin of the property business was 23.69%, down by 3.72percentage points year-on-year. The booked net profit margin was 12.76%, down by 1.16 percentage points fromthat of 2012. Apart from the overall market trend, certain factors also contributed to the decline in profit margins,including increase in the proportion of booked furbished units among overall total. This change resulted in lowerprofit margins but a higher rate of return, which was a manifestation of increased efficiency. The units sold in thesecond half of 2011 during market adjustment began to be recognised during the year under review alsocontributed to the profit margin adjustment. The Company had mitigated the impact of decreasing profit marginsby increasing operating efficiency, and maintained its return on equity at a record high. In 2013, the Company’sfully diluted return on equity was 19.66%, which remained the same as that of 2012.As at the end of 2013, the Company had a total area of 14,374,000 sq m sold but not yet booked stated in theconsolidated statements, as construction had yet to be completed. These unbooked resources had a contractamount of approximately RMB162.33 billion. The area and contract amount were6.1% and 13.0% higher thanthose at the beginning of 2013 respectively. Sufficient area sold but not yet booked provides a solid foundation forrealizing the Company’s future performance.Up to the end of 2013, the Company’s inventories included RMB17.71 billion of completed properties (propertiesready for sale), accounting for 5.37%;RMB187.28 billion of properties under development (including propertiessold but not yet booked), accounting for 56.80%; RMB124.37 billion of properties held for development(corresponding to the Company’s projects under planning), accounting for 37.72%. The inventory structureremained healthy.The Company’s actual floor area of new starts and completed area in 2013 reached 21,310,000 sq m and13,030,000 sq m respectively, representing year-on-year increases of48.7% and 33.1% and representing128.9%and 101.0% of the plan set at the beginning of the year respectively. The actual floor area of new starts andcompleted area during the second half of the year accounted for 56.9% and 66.9% of the full year planrespectively.In recent years, variation in housing market across cities widened. The Company used the PIE (ie, population,infrastructure, and employment) model to conduct thorough assessment of investment risk in order to makerational choices on which region to invest. During the year under review, the Company continued to focus on themainstream market, intensified penetration of its existing markets, and appropriately replenished quality projectresourcesin cities with promising development prospects.Due to severe struggle for landin popular cities, theCompany continued to uphold its principle of ―rather forgoing an opportunity than making a wrongacquisition‖for land acquisition, and insisted ona prudent investmentapproach to avoid acquiring overvalued sites.In 2013, the Company acquired 104 new development projects, with a site area attributable to Vanke’s equityholding of approximately 7,570,000sq m, representing a planned GFA of approximately 21,480,000 sq m.Approximately66% of the aforesaid projects were acquired via collaboration or alliance. The average landpremium basing on floor area of the newly acquired projects was approximately RMB3,516 per sq m.. As at the
                                                       Page 5end of the year under review, the GFA of the Company’s projects under planning attributable to Vanke’s equityholding amounted to approximately 44,950,000sq m, which remained sufficient to meet the Company’sdevelopment needs within the next two to three years. During the year under review, the Company extended itsreach to such cities as Quanzhou, Zhengzhou, Changzhou, Zhangzhou, Nanning, etc., thereby further optimizingits market coverage.As at the end of 2013,the Company’s liabilities (excluding receipts in advance) as a percentage of total assetsamounted to 45.54%. The Company’s net gearing ratio was 30.7%, which was down by approximately 10.8percentage points from 41.5% of the interim period of 2013 and continued to stay at a relatively low levelcompared to industry average. The Company’s debt structure had been further improved.Approximately 42.5% ofthe Company's interest-bearing liabilities were short-term liabilities, representing a decrease of 7.2 percentagepoints from 49.7% of 2012.Owing to its persistence with proactive sales promotionand prudent investment approach, the Company continuedto maintain a sound cash position. As at the end of the year under review, the cash and cash equivalents includingthe pledged deposit held by the Company amounted to RMB44.36billion, which was RMB6.76 billion more thanthat of 2013 interim period.Review on the Company’s management in 2013In 2013, faced with a complicated external environment and intensified competition, the Company insisted onachieving qualitative growth, through steady expansion in scale of operation and continued rise in operationefficiency.Furbished units delivered by the Company in 2013accounted for approximately90% of total delivery, basicallyrealising the delivery of only furbished units.Despite a record high number of furbished units delivered in the industry, the Company had strictly upheld itsphilosophy of ―quality comes first‖. It continued to step up efforts to promote quality within the company,optimise quantitative assessment of construction site safety, and pushed ahead with enhanced scientific projectmanagement. Furthermore, through providing drinking water at construction sites and improving sanitary facilities,the Company had created a safe working and living environment for workers, thereby raising workers’ qualityawareness. During the year under review, the Company initiated the promotion of delivery inspection checklist,inviting customers to participate in the supervision of property quality, which in turn facilitated continuedimprovement in the Company’s quality management. In accordance with the results of a customer satisfactionsurvey compiled by an independent third party, customer satisfaction on property quality improved year-on-yearin 2013 amid an increased number of furbished units delivered during the year.The Company has created a set of principles for prefabrication, namely ―enhancing quality, increasing efficiency,and reducing reliance on workers‖. Pursuant to the established development strategy, the Company will activelytransform the results of prefabrication technology into practical application in the areas of precast concreteexternal walls, fabricated interior walls, and interior and external walls without plaster between 2013 and 2015.Among the Company’s mainstream products which newly commencing construction in 2013, prefabricationapplication in the aforementioned three areas reached 8.3%, 38.8% and 29.1% respectively.During the year under review, the Company’s three-star green residential area ranked first in China, with 16 newthree-star green projects,comprising a total gross floor area of 1,727,000 sq m, of which 1,414,000 sq m wereresidential projects, accounting for 34% of China’s total three-star green residential area added in 2013. In order tointensify the promotion and application of green buildings, the Company has in recent years developed energy-saving residential properties meeting local conditions and mainstream family needs by combining technology andstandards required for three-star projects with local weather conditions and lifestyle. Moreover, this type ofhousing has lower technology requirement and is highly promotional. During the year under review, theCompany’s one-star and two-star green projects significantly increased from those of the previous year.In recent years, the Company launched ―Fortune Community Programme‖, and has been constantly rolling outinnovative services to enhance customers’ living experience. To meet the needs of home owners in the internet age,the Company collaborated with partners to provide convenient parcel services to residents through the provisionof ―Vanke-Yunda National Postal Services Cooperation‖, ―Vanke-Tmall Self Pick-up Cooperation‖, and ChinaUnicom’s database services.It is the vision of Vanke Property Services to be ―the designer of benchmarks forproperty management, the defender of the maintenance and enhancement of assets value, a facilitator of a
                                                       Page 6harmonic community environment, and a pioneer in information technology application in the industry‖. Aftertwo years of restructuring, Vanke Property Services consolidated its shareholding structure to become a relativelyindependent unit within the Company and further fine-tune its internal organisation. Leveraging its credibilityamong customers, Vanke Property Services succeeded in renewing contracts with 30% of its existing customersafter adjusting various service fees according to market conditions. The Company managed to maintain its leadingposition in providing quality property management services. During the year under review, Vanke PropertyServices was ranked the first among the ―2013 China's Top 200 Comprehensive Property Management Enterprises‖by China Property Management Institute, elected as ―China’s Property Management Top Brand Enterprise in 2013‖by China Index Academy and ranked the first among ―China’s Top 100 Property Management Enterprises in2013‖. To meet customer’s needs, Vanke Property Services continue to introduce services with significant results.During the year under review, Vanke Property Services realised operating profits of RMB35,230,000 andRMB26,36,0000 from home transaction intermediary services and household decoration merchanidsing servicesrespectively.During the year under review, the Company focused on commercial properties in support of residentialcommunities. To this, the Company worked on three product lines, namely shopping centres in the central districts,community’s central commercial district and community’s commercial precincts. By catering market needs, theCompany continued to enrich and fine-tune its commercial property portfolio. Results of the Company’s efforts totap into non-residential property development began to emerge, as reflected in the relatively good marketreception of Beijing Jinyu Vanke Plaza (Vmall), Shenzhen Vanke Plaza and Suzhou Vanke Midtown as at the endof 2013.During the year under review, the proposal on the change of listing location of the Company’s domestically listedforeign shares for listing and trading on the main board of The Stock Exchange of Hong Kong Limited by way ofintroduction was approved at the Company’s 2013 first extraordinary general meeting. The applicationforapproval of the proposal is being processed by China Securities Regulatory Commission and The StockExchange of Hong Kong Limited respectively. The Company will continue to actively push ahead with theadvancement of the proposal.During the year under review, the Company extended its reach to overseas market for the first time and landed onthe Hong Kong, US and Singapore markets through collaboration with local renowned property developers,including the joint development of Tsuen Wan Project in Hong Kong with New World Development CompanyLimited, joint development of Lumina Project in San Francisco, the US with Tishman Speyer, and jointdevelopment of The Glades Project in Singapore with Keppel Land. The main objective of the Company’sinternational business ventures for now is to strengthen its understanding of overseas mature markets, learn fromthe experience of top-notch overseas counterparts, thereby enhancing the Company’s expertise and managementlevel.During the year under review, three internationally renowned rating agencies, namely Standard & Poor’s,Moody’s Investors Service and Fitch Ratings assigned the Company long-term corporate credit ratings of BBB+,Baa2 and BBB+ respectively. In addition, Standard & Poor’s gave the Company a Greater China regional scalerating of ―cnA+‖. The Company’s stable operation practice, prudent financial management, as well as highcorporate credibility established over the years have gained wide recognition among international investors, andprovided the Company favourable conditions for development of overseas financing channels. In March 2013, theCompany completed the issuance of its first overseas US dollar bonds. The annual coupon rate of these US$800million bonds, with a 5-year term, was only 2.625%. In July, the Company’s overseas subsidiary successfullyestablished US$2 billion medium term notes programme. Key characteristics of the medium term notesprogramme include its diversity in currency and maturity, and offering a flexible and quick way for fund-raising.The Company could, according to its capital requirements and market condition, flexibly determine the actualissuesize and time. During the year under review, pursuant to the medium term notes programme, the Company’soverseas subsidiary issued SGD140 million four-year bonds, RMB1,000 million five-year bonds, RMB1,000million three-year bonds with annual coupon rates of 3.275%, 4.5% and 4.05% respectively.People are the most valuable asset. The Company has been committed to providingemployees with adequatedevelopment opportunities and creating a favourable work environment. In 2013, the Company set up amanagement academy, with the aim of going beyond an industry’s boundary, by encouraging cross-industrylearning.In addition, employee well-being has been used as a key indicator to assess management efficiency.Through health promotion activities, the Company encouraged employees to engage in healthy activities. Duringthe year under review, the Company organized a series of activities such as ―run for fun‖ in various regions. While
                                                       Page 7strengthening team cohesion, the Company also tried to demonstrate tothe public a positive, sunny and happycorporate culture. According to the Best Employers studyin 2013by Aon Hewitt, the world’s leading humanresources management consulting firm,,the Company won the title of Best Employer in 2013, indicating that theCompany was recognized by society for its efforts in employer brand building, talent selection and talent training.The Company hasgained social recognition for its corporate governance. At 2013 China Central Television(―CCTV‖) China Listed Companies Summit, Vanke won the title of―CCTV 50 Index  Best 10 Companies inCorporate Governance‖ and was selected as the index sample stock of ―CCTV Finance and Economics 50 Indexes2013 Annual SampleStocks‖ for its excellent performance in corporate governance.Vanke also listed on FortuneChina’s ―All-Star List of 2013 Most Praised PRC Enterprises‖, and ranked the first under the real estate developercategory. The Company also appeared on Forbes’s 2013 list of Asia-Pacific’s Best Listed CompaniesThe Company was also praised for its investor relations management. The Board received the Best Board ofDirectors Award from ―Directors & Boards‖. The Company’s Secretary to the Board received again the GoldMedal Secretary to the Board Award from ―New Fortune‖, the Golden Bull Award for the Best Secretary to theBoard from China Securities Journal, as well as the Most Innovative Secretary to the Board Award from―Directors & Boards‖.Development Prospects in 2014In 2014, under the guiding principle of ―enhancing efficiency while improving overall results‖, the Company willincrease operating efficiency with ―quality‖being its top priority. While strengthening its competitiveness intraditional business, the Company will continue to nurture and enhance its new business capabilities, in order tolay a solid foundation for its next 10-year development.Vanke will not compromise its quality. Providing customers with excellent quality products is the fundamental andprerequisite for the Company to gain customers’ trust and strengthen product competitiveness. The Company willcontinue to push ahead with full-scale application and improvement ofprecise measurement, delivery assessmentand delivery inspection checklist, and willfacilitatethe implementation of ―RMB100 Billion Plan‖ (engineersoverseas training programme). The Company will intensify the application of engineering technology andmanagement system that were introduced from overseas, optimise the quality inspection system for checkingsuppliers’ products, to ensure continued increase in Vanke’s product reputation amid a larger operation scale.In terms of the Compnay’s existing projects, the floor area of new starts and area to be completedin 2014 areexpected to reach 22,380,000 sq m and 14,800,000 sq m respectively. The Company will continue to adhere to its―cash is king‖ strategy. It will also strengthen dynamic resource management during the entire cycle, insist onproactive sales strategy, and push ahead with inventory clearance to maintain a reasonable inventory structure.The Company’s product positioning will continue to focus on the mainstream market. It will adhere to itsphilosophy of ―Building quality housing for ordinary people‖ and ―Building affordable and liveable homes‖. TheCompany will keep enhancing its product quality to reach industry’s best standards, and keep lifting product’sprice-performance, while adapting to changesin market and customer needs, thereby increasingmarketcompetitiveness.With respect to new project development,the Company insists on adopting a prudent approach. It will makereasonable investment by conducting scientific research and analysis, and will not acquire supreme land lot. Inaddition, the Company willidentify suitable opportunities for acquiringsufficient land lots that will meet the needsfor sustainable development in future. For newly acquired projects, the Company will deepen cooperation ondevelopment, by exploring a light asset-based operational model of ―participating in project management withminority shareholding‖.―Participating in project management with minority shareholding‖ is a further deepening of the Company'scollaboration model for project development. This means the Company engages in project management andoperation and does not have a controlling interest of the project. The project can use the Company's brand andproduct series, and share the Company's credit and procurement resources.Such light asset model is conducive to enhancing the Company's return on equity, through leveraging itsmanagement skills and brand awareness. In other words, the Company can support a large scale of operation andmarket share with the same asset size. This also implies the Company can rid itself of the reliance on equityfinancing to sustain its growth, thereby improving its ability to generate better return to shareholders by increasing
                                                       Page 8dividend payout.The Company has significantly raised its dividend payout in its proposal on dividend distribution for 2013. Thedividend payout ratio (cash dividend as a percentage of consolidated net profit for the year) almost doubled year-on-year, representing year-on-year increase of 127.8% in dividends per share. In future, the Company intends tosteadily raise its dividend payout ratio from the current year’s 29.87%.To support business development needs, the Company will expand its source of financing bykeeping an eye oninnovative financing methods andstrengthening cooperation with domestic and overseas funds. It aims to lowercapital cost by continuedexploration of various financing methods including residential development fund andcross-border Renminbi loan.According to the objectives of the three-year development plan for prefabrication, the Company planned toachieve the following percentage of prefabrication among its mainstream products in 2014: precast concreteexternal walls will account for 20%, fabricated interior walls 60%, andinterior and external walls without plaster50%.The Company is determined to push ahead with its green strategy. It willensure all projects meeting the basicrequirements of one-star green architecture certification, encourage frontline companies to initiate customer value-oriented green product innovation, and launch new three-star project pilot program in different regions.While a city’s development imposes morestringent requirements ona corporation’s property development andoperation capability, it also providesgreater room for the corporation’s growth. In addition to consolidating itstraditional business, the Company will continue to improve the platform for serving residential communities,closely monitor opportunities in new market segments, intensifystudy and exploration on businesses suchasretirement communities and industrial park. It will actively explore and cultivate capabilities for new businessdevelopment, thereby continuing to fuel the Company’s growth.Internationalisation is one of the long-term development strategies that Vanke needs to consider. With respect toexisting overseas projects, the Company will further improve its operation management mechanism. Whilekeeping overseas investment exposure under control, the Company will continue to identifyopportunities forpossible cooperation, explore and fully leverage capital and business resources available in overseas markets.Furthermore, the Company will seek to enhance its expertise and revolutionise business model.High-calibre people are key to management efficiency and business development. Vanke will continue tostrengthen development of its human resources system, fine-tune talents successive plan and improveorganizational effectiveness. In future, the Company will continue to build an open learning platform, bygathering learning resources from different areas. Through learning from and exchanging ideas with otheroutstanding enterprises, a corporation’s creativity will be ignited, therebybuilding a leadership that fitsfor the ageof change.2. Operation of the Company(1) The scope and operations of the Company’s core businessesA. By sectorThe Company specialises in property development with commodity housing as its major products. In 2013, theCompany’s sales area and sales amount were14,899,000 sq m and RMB170.94billion respectively, representingyear-on-year increases of 15.0% and21.0% respectively.In 2013, the total sales of commodity housing in the PRC amounted to RMB8,142,830 million. Based on theaforesaid amount, the Company accounted for 2.09% of the domestic market in 2013.During the year under review, the booked area, booked revenue and booked cost of the Company’s propertyprojects were 12,310,000 sq m, RMB124.98billion and RMB91.55billion respectively, representing increases of36.9%, 31.0%, and 41.8% respectively when compared with those of the previous year. The operating profitmargin of the property business for the year was 26.56%, down by 0.85 percentage points from that of theprevious year.
                                                                                            Unit: RMB’000
                                                       Page 9
                                            Revenue                          Cost of sales                    Operating profit margin
            Sector
                                     Amount           Change            Amount           Change           Value             Change
                                                                                                                     Down by 3.70
    1.     Core businesses               126,362,091        31.32%           92,708,768           41.92%     23.57%
                                                                                                                         percentage points
              Property                                                                                               Down by 3.72
                                     124,977,415        30.98%           91,545,210           41.71%     23.69%
              development                                                                                                percentage pointsInclude:
              Property                                                                                               Up by 2.84 percentage
                                       1,384,676        71.54%            1,163,558           65.89%     12.95%
              management                                                                                                 points
                                                                                                                     Up by 11.38 percentage
    2. Other businesses                    1,091,674        71.62%              105,584           -17.82%    91.18%
                                                                                                                         points
                                                                                                                     Down by 3.46
    Total                                127,453,765        31.59%           92,814,352           41.80%     24.15%
                                                                                                                         percentage points* Core business tax and surchange and the land appreciation taxes had been deducted from the operating profit margin.B. By investment region
                                 Revenue
                                                                                                            Booked
                                from core                             Net profit
                                                   Percentage                         Percentage             area            Percentage
                                businesses                           (RMB’000)
                                                                                                            (sq m)
                               (RMB’000)
    Guangshen Region                  41,930,663          33.55%           6,636,488            41.60%           3,963,547            32.20%
    Shanghai Region                     26,307,805        21.05%           3,033,298            19.02%           1,942,960            15.78%
    Beijing Region                      32,035,545        25.63%           2,709,930            16.99%           3,457,700            28.09%
    Chengdu Region                      24,703,402        19.77%           3,571,466            22.39%           2,945,738            23.93%
    Total                             124,977,415        100.00%         15,951,181         100.00%             12,309,945          100.00%(2) Operation and operating results of the Company’s major wholly-owned subsidiaries
                                                                                                                       Unit: RMB’000
                                                                                                                            Major projects
          Name of company              Equity      Revenue in 2013       Net profit in 2013       Total assets at the end   developed in
                                       interest                                                          of 2013                2013
                                                                                                                            Jincheng (锦
                                                                                                                            程), Palace of
       Vanke (Chongqing ) Real          100%          4,735,323               891,600                   9,769,580             Pleasure,
           Estate Co., Ltd.                                                                                                 Wonder Town,
                                                                                                                             Chongqing,
                                                                                                                            Jinyu Rongjun
    Fuzhou Vanke Real Estate Co.,      100%          2,745,739               409,710                   2,685,820            (金域榕郡),
                Ltd.                                                                                                            Fuzhou
    Wuhan Vanke New Milestone          100%          2,454,792               301,230                   2,960,060           Vanke Golden
        Real Estate Co., Ltd.                                                                                                City, Wuhan
                                                                                                                                Vanke
    Qingdao Vanke Property Co.,        100%          2,373,219               291,500                   2,091,580             Ecological
                Ltd.                                                                                                        Town, Qingdao
        Shenzhen Vanke Taolin                                                                                                  Qianlin
    Investment and Development         100%          1,677,761               402,140                   1,773,540              Shanju,
              Co., Ltd.                                                                                                       Shenzhen
                                                                  Page 10
    Nanjing The Paradiso Property      100%          1,571,229               233,920              3,392,340             The Paradiso,
            Co., Ltd.                                                                                                   Nanjing
                                                                                                                           Blue
                                                                                                                       Mountain,
                                                                                                                        Beijing, ,
    Beijing Vanke Company                                                                                            Beijing Vanke
             Limited                 100%          1,465,948               443,470              18,515,150            Home (万科
                                                                                                                        红), and
                                                                                                                      Beijing Vanke
                                                                                                                      Lan (万科蓝)
                                                                                                                        Hangzhou
    Hangzhou Liangzhu New            100%          1,461,101               230,710              3,319,570             Liangzhu New
    Town Development Co., Ltd.                                                                                             Town
                                                                                                                           Jinyu
    Taiyuan Vanke Real Estate Co.,     100%          1,406,804               191,230              1,299,520              Internationl,
              Ltd.                                                                                                       Taiyuan
    ChengduVankeJinjiangProperty       100%          1,344,884               219,690              1,101,360             Jinrun Huafu,
           Co., Ltd.                                                                                                     Chengdu
    (3) Implementation of the business plan
    The Company focused on mainstream customers – end-users, and actively promoted sales to achieve satisfactory
    performance. In 2013, the Company’s sales area and sales amountreached 14,899,000 sq m and
    RMB170.94billion respectively, representing year-on-year increases of 15.0% and 21.0% respectively.
    At the beginning of the year, the Company’s planned floor area of new starts and area to becompleted for the full
    year were 16,530,000 sq m and 12,900,000 sq m respectively. In 2013, the actual floor area of new starts
    amounted to 21,310,000 sq m, representing an increase of 28.9% from that planned at the beginning of the year.
    The actual completed area achieved by the Company amounted to 13,030,000 sq m, representing an increase of
    1.0% from that planned at the beginning of the year.
    Development of the Company’s major projects in 2013
                                                                                                                          Unit: sq m
    Project Name            Location        Equity     Site area        Planned       Area of        Area of           Accumulated
                                            interest                      GFA        construction   construction           area of
                                                                                        work        work done in        construction
                                                                                     commenced         2013            work not done
                                                                                       in 2013                         as at the end of
                                                                                                                             2013Guangshen RegionVanke Centre,
                             Yantian          100%         61,730           80,201              -            34,608              34,608Shenzhen
    Vega Villa, Shenzhen         Yantian          100%        253,990           30,028        10,420                  -              19,608
    Shenzhen One City            Yantian           50%        137,250          354,695       166,398                  -                    -Antuoshan Project,
                            Nanshan           100%         48,804          219,967              -                 -                    -ShenzhenLiuxiandong (留仙洞),
                            Nanshan           100%        394,044        1,335,510              -                 -                    -ShenzhenRespecte Chateau,
                             Baoan            100%         65,364          165,648              -            40,073            165,648Shenzhen
                                                               Page 11Ravine Village,
                             Baoan       60%    158,639        47,270          -         -         -ShenzhenPhilippe Castle,
                             Baoan       100%    77,045       264,075     41,182    43,237    43,237Shenzhen
    Golden Paradise,          Pingshan New
                                         100%   104,801       323,624          -    49,269   131,455
    Shenzhen                     District
    The Village, Shenzhen       Longgang     100%   421,916       595,982          -    48,939   514,737Tianyu(天誉),
                           Longgang      100%    62,577       355,364    260,270    67,312    67,312ShenzhenQianlin Shanju,
                           Longgang      100%   198,597       380,547          -    56,270   380,547Shenzhen
    Home, Shenzhen             Longgang      100%    31,337       155,951          -    63,907   155,951
    Home III, Shenzhen         Longgang      50%     43,713       178,241    114,684         -         -Shuijing Project, Buji,
                           Longgang      60%    164,982       456,405    110,582         -         -Shenzhen
    Park Avenue, Shenzhen      Longgang      65%     75,326       345,026          -         -   143,006Bayifu (八意府),
                           Longgang      100%    28,894       115,040          -    47,580    47,580ShenzhenLangqi Project,
                           Longgang      100%    41,487        22,380          -         -         -Shenzhen
    Dajia Island, Shenzhen      Huizhou      100%   364,450        93,340          -         -         -Lunas Del Mar (双月
                            Huidong      67%    704,223      1,068,191         -   119,595   119,595湾), Huizhou
    Jinyu Huating, Huizhou     Huicheng      100%   151,298       327,550     13,872    79,047   218,837Watercity (双城水岸),
                          Tangxia Town   100%   596,786       414,759    116,394   106,186   190,311DongguanSpring Dew Mansion,
                          Tangxia Town   51%    128,144       256,287          -    18,777    18,777Dongguan
    Golden City, Dongguan     Tangxia Town   100%    32,002        96,006     96,006         -         -Wonderland (四季花
                          Tangxia Town   100%    51,263        92,273     92,273         -         -城), Dongguan
    Jinyu Songhu (金域松       Songshan
                                         51%    135,049       381,000          -   125,176   210,781
    湖), Dongguan                Lake
    Hongxinuoya,               Songshan
                                         100%   349,951       267,450          -    49,589   267,450
    Dongguan                     Lake
    Songhu Centre (松湖中      Songshan
                                         34%     95,506        73,872          -    23,509    23,509
    心), Dongguan                Lake
    Songhu Centre II,          Songshan
                                         25%     30,084        30,084     11,219    18,865    18,865
    Dongguan                     LakeVanke Building,
                           Nanchang      100%     4,771        42,937          -         -         -DongguanKing Metropolis,
                           Nancheng      51%    189,934       493,827          -   149,154   380,159DongguanFeilishan (翡丽山),
                           Nancheng      50%    249,534       374,302    158,681         -    50,717DongguanXiangshu Lishe(香树丽
                           Nanchang      51%     43,851       109,626    109,626         -         -舍), DongguanVanke Centre,
                           Guancheng     55%     53,887       215,547    215,547         -         -DongguanJinyu Huating,
                           Guancheng     55%      9,185        29,393     29,393         -         -Dongguan
    Zitai, Dongguan           Humen Town     100%    60,570       151,426          -    68,628   151,426Gold Milestone,
                          Humen Town     100%    17,374        69,495     69,495         -         -DongguanDream Town, Humen,
                          Humen Town     80%    349,805       784,136          -         -         -Dongguan
    Chang’ an Vanke           Chang’an
                                         100%    75,653       249,658    101,196    31,182    46,572
    Centre, Dongguan            TownJiyu International,
                          Houjie Town    100%    88,788       257,486          -    86,337    86,337Dongguan
    Houjie Plaza,               Houjie
                                         67%     32,002       113,856    113,856         -         -
    Dongguan                     Town
    Dream Town,                Changping     100%   635,971       442,460          -    70,170   357,792
                                                   Page 12
    Changping, Dongguan          Town
    Vanke Luhu, (万科麓       Dalingshan
                                        100%    146,674       117,341          -    35,862   117,341
    湖) Dongguan                TownSonghu Chuanqi (松湖
                          Liaobu Town   100%     68,431       150,548    150,548         -         -传奇), DongguanThe Paradiso,
                            Baiyun      50%     144,657       433,584          -    95,173   406,461GuangzhouFengejing Huayuan (峰
                            Baiyun      100%     24,052        93,803     93,803         -         -境花园), GuanzghouJinyu Huating,
                            Haizhu      100%       9,117       85,682          -         -    41,444GuanzghouJiangyan Road Project,
                            Haizhu      68%      16,831        52,765     52,765         -         -GuangzhouLe Bonheur,
                            Liwan       100%     38,111       135,689          -    28,597   135,689GuangzhouLand LotAF020122,
                            Liwan       100%      7,141        30,706          -         -         -Xinlongsha, GuangzhouVanke Fuqian Garden,
                            Nansha      95%     134,760       269,520          -   200,819   269,520GuangzhouRacho Santa Fe,
                            Huadu       49%     210,252       126,172          -    18,034    94,119GuangzhouHuashan Project,
                            Huadu       50%     126,941       279,270          -         -         -GuangzhouDonghui Town,
                           Luogang      55%     177,588       444,943    214,093   111,973   111,973GuangzhouDonghui Town
    (Expanding),               Luogang      33%     109,748       271,463          -         -         -GuangzhouGolden Dream (金色梦
                           Luogang      51%     115,671       289,178    202,188         -         -想), Guangzhou
    Jinse Yuefu, Guangzhou     Huangpu      100%     24,506        63,591          -    63,591    63,591Land Lot AT030548Gaotang New Area of
                            Tianhe      100%     30,995        82,962     82,962         -         -Tianhe Software Park,GuangzhouHuangge Avenue
                            Nansha      100%    156,555       250,488          -         -         -Project, GuangzhouXinguang City Garden
    (新光城市花园),             Panyu       100%    364,651       591,662    236,226    55,395   181,629Guangzhou
    Dream Town, Qingyuan      Qingcheng     100%   1,219,450     2,438,901    60,085   153,326   354,190
    Vanke Huafu, Qingyuan     Qingcheng     100%     79,336       316,002     80,901    50,675    72,413
    The Paradiso, Foshan        Nanhai      55%     221,035       568,957     66,283    73,007   342,107Jinse Xigu Huayuan (金
                            Nanhai      49%      66,533        81,080          -    47,307    75,453色溪谷花园), FoshanLand Lot B21, Finance
                            Nanhai      100%     30,984       130,000          -         -         -District C, FoshanLand Lot B23-24
    Finance District C,         Nanhai      100%    188,996       793,784          -         -         -FoshanLand Lot A32 Finance
                            Nanhai      100%     25,178       146,000          -         -         -District C, FoshanRespecte Chateau Plaza
    (金色领域广场),             Nanhai      50%      47,254       354,404     95,610         -         -FoshanBinfen Siji (缤纷四季),
                            Shunde      100%    156,840       429,527          -    97,663   286,326Foshan
    Crystal City, Foshan        Shunde      49%     284,036       710,092    187,465   101,724   232,872
    Qinyuan, Foshan             Shunde      100%     80,571       241,712          -    25,525   171,024Tianaowan Project,
                            Shunde      50%      30,382        74,359          -    57,256    57,256Foshan
    F06 Project, Foshan         Shunde      50%     113,224       452,880          -         -         -
    Binfen Xiyuan (缤纷西       Shunde      100%     43,748       153,000     48,022         -         -
                                                   Page 13园), Foshan
    Vanke Plaza, Foshan        Chancheng     88%    114,429      555,819    15,191         -         -
    Dream Town, Foshan         Chancheng     100%   337,544      776,350   264,543     9,890   296,376Jinyu International,
                           Chancheng     51%     89,009      373,820   175,184    11,710    11,710FoshanZhubin Garden (珠宾花
                           Xiangzhou     100%   109,917      146,497         -         -   109,873园), ZhuhaiJinyu Gangwan (金域
                           Xiangzhou     50%     78,000      196,358         -         -         -港湾), Zhuhai
    Glamorous City, Zhuhai      Doumen       100%   137,061      274,122         -         -         -
    City Garden, Zhuhai          Jinwan      51%     63,233      189,684         -    51,863    51,863Jinyue Huating (金悦华
                          Tanzhou Town   100%    32,103      127,789         -    93,376    93,376庭), Zhongshan
                            EasternSpring Dew Mansion,
                           District of   100%    76,387      175,133         -    49,046   100,092Zhongshan
                           Zhongshan
    Golden Home (金色家        Dongfeng
                                         100%   255,623      789,453   174,265    86,642   141,613
    园), Zhongshan               Town
    Le Bonheur, Zhongshan        Huoju       65%    251,900      469,359    70,333         -         -Qingxi Road Project,
                             Shiqi       75%    143,852      429,779         -         -         -Zhongshan
    Heart of Lake, Xiamen         Huli       100%    95,098      199,710    48,561    20,589    54,797
    Joying Gold, Xiamen         Xiang’an    100%    54,441      109,000         -         -   106,092King Metropolis,
                             Jimei       100%   102,427      446,842    73,646    90,109   141,454Xiamen
    Vanke Plaza, Xiamen          Jimei       100%   137,934      710,000    22,670         -         -Dream Town, Haicang,
                            Haicang      40%    189,752      517,690   166,310         -         -XiamenDream Town,
                             Fengze      60%    136,741      478,591   156,465         -         -QuanzhouJinyu Zhongyang(金域
    中央), Shishi,               Shishi      70%     82,769      211,503         -         -         -QuanzhouDream Town,
                           Xiangcheng    60%    235,606      805,195         -         -         -ZhangzhouJinyu Rongjun (金域榕
                             Jinan       100%   166,736      383,296    21,396    59,110   324,098郡), FuzhouKing Metropolis,
                           Cangshan      100%    16,168       37,614         -         -    34,399Fuzhou
    Vanke Plaza, Fuzhou         Taijiang     100%    93,360      443,107    29,503   259,346   259,346Jinyu Garden (金域花
                            Taijiang     60%     25,397      130,795         -         -         -园), Fuzhou
    Dream Town, Yongtai,        Yongtai
                                         51%    392,000      418,919         -         -         -
    Fuzhou                      County
                            Minhou
    The Paradiso, Fuzhou                     51%    213,602      687,507    99,046         -         -
                            County
    Dream Town, Putian          Licheng      80%    250,708      530,972   140,600   148,303   148,303King Metropolis,
                             Yuhua       60%    238,066      512,778         -   128,728   337,298ChangshaProject Gaozheng,
                             Yuhua       60%     40,360      170,945         -         -         -ChangshaChengji Xinyuan
                             Yuhua       40%    351,380      960,664         -    57,570    57,570Project, ChangshaExpanded Land Lot205, Jingtou Yintai (京
                             Yuhua       40%    108,857      326,572         -         -         -投银泰 205 扩容地块),Changsha
    The Paradiso, Changsha       Furong      100%   120,208      358,888         -         -   102,956
    City Garden, Changsha        Yuelu       100%    40,461      138,032         -    11,927   138,032Golden Paradise,
                             Yuelu       78%     43,737      129,437    79,433         -         -Changsha
                                                   Page 14Jinyu Bingjiang,
                            Yuelu      58%       58,287       208,359           -           -           -Changsha
    Heron Hill, Changsha        Yuelu      100%     100,351       298,502    214,353            -           -Jiyu International,
                            Yuelu      51%      159,393       585,845           -           -           -ChangshaMeixihu (梅溪湖),
                            Yuelu      100%     129,323       311,937           -           -           -Changsha
    Dream Town, Changsha        Kaifu      70%      206,251       481,034           -    156,606     292,452
    Zitai, Changsha            Tianxin     70%      116,486       270,963     34,786            -           -Vanke Building,
                          Liangqing    100%      25,545       117,670           -           -           -NanningSanya Forest Holiday
                        Tiandu Town    65%      942,745       470,814    167,293     106,457     161,041ParkGaozhiyuan Project,
                        Tiandu Town    65%      387,807       349,026           -           -     69,185SanyaLakeside Holiday Park,
                           Hedong      80%      338,410       423,315     75,486            -           -Sanya
    Guangshen Region subtotal                     18,604,289   39,250,665   5,431,109   3,954,609   9,890,151Shanghai Region
                          Pudong New
    Wujiefang, Shanghai                    100%      121,463      126,887           -     77,083      77,083
                            District
    Haishang Chuanqi (海      Pudong New
                                        60%      140,981      310,159           -     83,780      83,780
    上传奇), Shanghai           District
                          Pudong New
    Golden City, Shanghai                   60%      264,646      549,046           -           -    296,741
                            District
    Feicui Bingjiang          Pudong New
                                        75%       58,550      175,990           -           -           -
    Project, Shanghai           District
    Bingjiang Project,        Pudong New
                                       100%       31,617       79,042           -           -           -
    Shanghai                    District
    Zhangjiang East Land      Pudong New
                                        45%       79,548      216,569           -           -           -
    Lot, Shanghai               District
    Zhangjiang West Land      Pudong New
                                        45%       24,756       74,269           -           -           -
    Lot, Shanghai               District
    53# Qibao, Shanghai        Minhang     100%       48,932      126,800           -           -           -New City Garden,
                           Minhang      51%      295,069      401,070     48,467      55,484     214,336ShanghaiSouthern portion ofLand Lot No.
    03,Shanghai Hongqiao       Minhang      50%       32,177      110,462           -           -           -Business District CoreDistrict Phase I
    Firenze, Shanghai          Minhang      49%      304,830      199,071     36,386      41,861     161,898Project No. 11,
                           Minhang      61%      112,864      177,885    131,714            -           -Hongqiao, Shanghai
    Dream Town, Shanghai       Minhang      70%      210,615      501,833    453,083            -           -Nanzhan Business
    District Land Lot,          Xuhui       51%      107,486      493,447    105,988            -           -Shanghai
    Shangyuan, Shanghai         Qingpu      49%      116,524      142,858           -           -    136,828
    Jinse Huating, Shanghai    Songjiang    33%       67,932      108,137           -     57,983     108,13714# Songjiang Business
                           Songjiang    60%       57,734      143,220    103,915            -           -District, ShanghaiRespecte
                            Jiading     50%       90,013      180,026     82,561      72,617      72,617Chateau,Shanghai
    The Paradiso, Nantong      Gangzha      55%       99,910      218,650           -     67,932     118,956Rengang Road Land
                          Chongchuan   100%       53,277      141,700     95,197            -           -Lot, NantongAnpin Street Project,
                            Baixia     100%       27,325       20,340           -           -           -Nanjing
    The Paradiso, Nanjing      Jiangning   100%      272,298      545,280    139,949     120,488     294,595
    Longxi Project, Nanjing    Jiangning   100%       36,043      107,606           -           -           -Respecte Chateau,
                             Qixia     100%       91,751      201,828           -     62,425      62,425Nanjing
                                                    Page 15
    Golden Hill,Nanjing          Pukou       100%     62,291        98,694     44,084         -           -
    Jiudouhui, Nanjing         Yuhuatai      80%     126,058       314,741     57,779         -           -Glamorous City,
                           Runzhou       100%    795,100       942,820    126,707    72,676    474,659ZhenjiangBlue Mountain Garden,
                           Runzhou       60%     285,683       416,285     22,291    55,366     95,628Zhenjiang
                           Industrial
    Nimble Bay, Suzhou                       70%     384,042       835,281     36,397    88,986    731,181
                            District
    Golden Paradise,           Industrial
                                         92%      47,177       117,936          -    54,343    117,936
    Suzhou                      District
    Nimble East District,      Industrial
                                         50%     104,486       179,075    179,075         -           -
    Suzhou                      DistrictNew Metropolis,
                          New District   55%      89,098        83,220          -    38,618     56,064SuzhouGolden
                           Jinchang      49%      99,093       247,732    109,467    87,139     87,139Milestone,Suzhou
    Dream Town, Suzhou         Wuzhong       55%     144,535       361,338    157,691         -           -
    Jinyu Pingjiang, Suzhou      Gusu        46%      80,948       189,677     75,539         -           -VC Small Town,
                          Xiangcheng     51%     138,601       415,804     61,786         -           -Suzhou
                            Bacheng
    Golf Project, Kunshan                    100%    433,916       240,701     70,068         -           -
                             Town
                            HuaqiaoGlamorous Garden,
                          Development    92%     309,177       773,042    361,902         -           -
    Kunshan                     District
    Glamorous City, Wuxi         Binhu       60%     962,116      1,346,963    68,910    67,563   1,042,113
    The Paradiso, Wuxi           Binhu       100%    154,468       386,170     29,232         -    162,875
    Xincheng Road, Wuxi         Binhu        100%    154,119       385,299          -    36,709     36,709
                             New
    Golden Paradise,Wuxi                     100%    224,118       620,713    135,832   111,955    285,832
                            DistrictDream Town,
                             Wujin       100%     93,994       234,983          -         -           -Changzhou
    Dream Town, Yangzhou       Hanjiang      65%     297,139       313,970      4,255    99,013     99,013King Metropolis,
                           Hanjiang      65%      59,835       129,512    110,028         -           -Yangzhou
    Dream Town, Xuzhou            Jiuli      100%    396,349       716,021    320,083         -           -Huaihai WestRoad
                           Quanshan      85%     226,776       810,587          -         -           -Project, XuzhouLiangzhu Cultural
                            Yuhang       100%   3,108,146     2,361,628   284,868    85,178    974,175Village, HangzhouBeichenzhiguang,
                            Yuhang       50%     115,683       293,409    293,409         -           -HangzhouLiangzhu New Town,
                            Yuhang       33%      56,286       140,715          -         -           -Hangzhou
    Xilu, Hangzhou               Xihu        51%      80,140       151,996    151,996         -           -Land Lot No. 59,
                             Xihu        100%     30,403        60,806          -         -           -Jiangcun, Hangzhou
    Caozhuang, Hangzhou        Jianggan      100%     45,709        89,644     55,350         -     34,294
    Park Avenue, Hangzhou      Jianggan      50%      68,564       150,841    150,841         -           -
    Zitai, Hangzhou            Jianggan      100%     46,069       110,566    110,566         -           -Qinjiang New Town,
                           Jianggan      100%     21,915        76,703          -         -           -HangzhouVanke Dajia Qiantang
                           Jianggan      50%      51,945       135,057    135,057         -           -Mansion, Hangzhou
    Puyuewan, Hangzhou          Binjiang     60%      66,521       166,204    166,204         -           -Xiaoshan Project,
                           Xiaoshan      50%      67,425       188,790          -         -           -Hangzhou
    Gongwang, Hangzhou          Fuyang       100%    517,900       208,981          -     7,370     82,489Junwang A+D,
                            Fuyang       20%     129,874       164,845          -         -           -HangzhouJunwang B+C,
                            Fuyang       20%     138,233       152,231          -         -           -Hangzhou
    Golden Paradise,          Xiuzhou New    100%     85,286       137,495          -   123,622    123,622
                                                    Page 16
    Jiaxing                      District
                          Xiuzhou New
    Golden Dream, Jiaxing                     100%      80,987        144,699            -           -           -
                             District
    Haishang Chuanqi (海        Economic.
                           Development.   100%      31,945         66,904      66,904            -           -
    上传奇), Jiaxing              Zone
    Yunluwan, Ningbo             Jiangbei     100%     314,208        394,764      58,635            -     75,367
    Golden City, Ningbo         Yinzhou       100%      95,242        171,425            -     92,824     171,425Jinyu International,
                            Yinzhou        55%      41,080         73,940      73,940            -           -NingboLegend On Midtown(金
                            Yinzhou        55%      43,752        100,630            -           -           -域传奇), Ningbo
    Dream Town, Ningbo           Zhenhai       49%     226,777        491,525      93,510     138,239     138,239Dream Town East,
                             Zhenhai       49%      70,795        127,431            -           -           -NingboJiangdong Mansion,
                            Jiangdong     100%      66,833        133,666     133,666            -           -Ningbo
    Park Avenue, Ningbo          Gaoxin        82%      48,004        105,609     105,609            -           -Longwan Golden,
                            Longwan        60%     125,219        179,733            -     90,424      90,424WenzhouLegend On Midtown
                            Longwan        51%      45,864        128,396     128,396            -           -(金域传奇), WenzhouJinyu Zhongyang (金域
                              Ouhai        60%      53,765        144,939     144,939            -           -中央), Wenzhou
    Golden Mingjun, Hefei       Shushan        50%     107,326        401,670            -    133,563     401,670
    King Metropolis, Hefei      Shushan        50%     115,628        412,101     124,904     106,736     203,984
    Dream Town, Hefei             Binhu        55%     107,220        375,272      96,368     116,058     116,058Blue Mountain Garden,
                              Binhu        55%     165,584        463,635     118,121            -           -Hefei
    Forest Park, Hefei           Luyang       100%     516,459       1,394,439    251,893            -           -
    Dream Town, Wuhu             Jiujiang     100%     274,404        493,926      21,804     112,238     112,238Haishang Chuanqi
                             Yijiang       49%     121,895        367,711            -           -           -Garden, WuhuQingshan Lake Mingdi
                            Qingshan
    (青山湖名邸),                              50%      97,061        133,693            -     54,648     133,076
                              LakeNanchang
    Jinse Minjun (金色名        Qingshan
                                           50%      16,888         50,381            -           -           -
    俊), Nanchang                 Lake
    Dew Garden, Nanchang       Qingyunpu       50%      97,109        144,011            -     83,345     144,011The Paradiso,
                              Xihu         50%      21,818         75,338            -     75,338      75,338Nanchang
    Dream Town, Nanchang         Gaoxin        33%     299,708        417,362     196,366      69,435      69,435Haishang Chuanqi (海
                             Gaoxin        50%     163,213        355,802     105,718            -           -上传奇), NanchangCuidieyuan (粹叠园),
                           Honggutan       50%      80,120        184,276            -           -           -NanchangShanghai Region
                                                 16,474,463     27,635,928   6,237,450   2,641,039   7,762,390subtotalBeijing region
    Ruyuan C1, Beijing        Haidian         50%       85,099        187,218      67,182            -           -
    Ruyuan C3, Beijing        Haidian         50%       33,745         79,306            -     43,457      43,457No. 5 Park Front
    Boutique Apartment,       Chaoyang        60%       37,917         97,044            -           -     97,044Beijing
    Beijing Hills             Chaoyang        100%      55,885        155,330            -     43,276     155,330The Metropolis (大都
                          Chaoyang        100%       5,329         36,465            -     27,998      36,465会), BeijingNo. 77 Beihe Yanjia (北
                          Dongcheng       100%       4,103         14,372            -           -     14,372河沿甲), BeijingHongshi Jiayuan (红狮
                          Fengtai         100%      59,800        180,152            -     34,143     180,152家园), Beijing
                                                      Page 17Vanke Lan (万科
                          Fengtai     100%     14,449        36,084          -         -         -蓝),Beijing
    Xihuafu, Beijing          Fengtai     50%     233,209       629,170    120,986         -         -Land Lots010, 014,
    015, 017, 019 Park        Tongzhou    50%      88,767       210,738          -         -         -Avenue, BeijingLand Lot 007 Park
                          Tongzhou    35%      34,657       103,971          -         -         -Avenue, BeijingLand Lots 005, 008,
    009 Park Avenue,          Tongzhou    50%      61,717       123,434          -         -         -BeijingJinyu Vanke City,
                          Changping   49%     178,908       485,234          -    22,116   417,142BeijingKing Metropolis,
                          Changping   50%     198,007       559,214     79,719         -   192,966BeijingChangyang Bandao,
                          Fangshan    50%     437,179       853,165    256,093   156,484   423,109BeijingYunwan Jiayuan,
                          Fangshan    50%      61,567       157,984          -    23,908    23,908BeijingXingfuhui (幸福汇),
                          Fangshan    68%      71,912       137,777     73,156      763     35,553Beijing
    New Milestone, Beijing    Fangshan    20%      77,834       142,612     82,969    59,643    59,643Golden Paradise,
                          Fangshan    40%      65,967       156,993     64,095         -         -BeijingJinyu Park (金域公园),
                          Fangshan    51%      27,528        55,056          -         -         -BeijingChangyang Tiandi (长
                          Fangshan    38%     112,673       208,351          -         -         -阳天地), BeijingChangyang Bandao,
    Central Town (长阳半      Fangshan    35%      63,950       156,384          -         -         -岛中央城), BeijingSpring Dew Mansion,
                          Daxing      50%      67,651       173,215    128,613         -         -BeijingEastern
                          Daxing      50%      57,826       144,564    144,564         -         -Metropolis,BeijingVanke Cheng (万科橙) ,
                          Daxing      50%      43,446       155,207    101,412         -         -BeijingShoukai Vanke Centre
    (首开万科中心),           Daxing      50%      41,092       126,996          -         -         -BeijingTianzhu Joying City (天
                          Shunyi      56%      17,985        31,051          -         -         -竺悦城), BeijingBaoshui District
    Project, Tianzhu,         Shunyi      97%      25,112        44,716          -         -         -BeijingGaoliying Project,
                          Shunyi      35%     187,830       170,568          -         -         -Beijing
    Huanqingcheng,            Xianghe
                                      50%     130,045       221,077          -         -         -
    Langfang                  County
    Stratford, Tangshan       Lunan       100%    153,527       104,445          -    27,772    97,485Windsor Castle(温莎
                          Lunan       100%     47,007        47,635     24,095         -         -堡), TangshanKing
                          Lubei       60%      78,977       166,159          -    87,350    87,350Metropolis,Tangshan
    The Paradiso,Tangshan     Lubei       40%      53,440       154,503          -         -         -
                          Fenghuang
    New Milestone, Tianjin                48%      88,848       264,659          -         -         -
                          New CityHoliday Views (假日风
                          Haigang     48%      75,526       188,816          -   105,753   105,753景), QinhuangdaoBeidaihe Town (北戴河
                          Beidaihe    50%     238,561       278,286     48,403         -         -小镇), Qinhuangdao
    Waterfront, Tianjin       Dongli      100%   2,708,886     1,763,059    30,426    45,731   898,212A Glamorous City,
                          Dongli      100%    176,773       258,579          -    25,521   251,881Tianjin
                                                 Page 18
    New Milestone, Tianjin    Dongli        51%    136,524       206,863          -    52,466   206,863Jinse Yazhu (金色雅
                          Dongli        49%     90,792       173,937          -    20,853   173,937筑), Tianjin
    King Metropolis,Tianjin   Dongli        51%    221,217       360,069     28,419         -         -Holiday Dew Garden,
                          Xiqing        100%   229,201       343,101     19,274    94,130   306,702TianjinJin’ao International,
                          Xiqing        100%    58,577       160,080          -    71,234   160,080Tianjin
    Wonderland,Tianjin        Xiqing        51%    409,701       502,892     69,971         -         -
                          Development
    Binhai Modern, Tianjin    District
                                        100%     6,538        43,473          -         -         -
                          Development
    Park Residence, Tianjin   District
                                        60%     32,270        48,709          -         -    25,424
    Harbor (海港城),          Binhai New
                                        51%    149,483       372,910    116,221    54,836   152,251
    Tianjin                   District
                          Binhai New
    Jinlu (锦庐), Tianjin                   95%     90,604       127,095     64,779         -    47,355
                          District
                          Binhai New
    East Coast, Tianjin                     51%    255,311       377,516          -         -         -
                          District
    Jinyu                     Binhai New
                                        51%    108,389       189,160     39,637         -         -
    Internationl,Tianjin      DistrictShilinyuan (仕林苑),
                          Jinnan        40%     63,582       114,474          -    25,251    25,251TianjinPark Residence,
    Meijiang (梅江柏翠园),    Hexi          80%     62,205       124,410          -         -         -Tianjin
    Dream Town, Shenyang      Heping        49%    361,320       868,373          -    73,225   783,358
    Rotterdam , Shenyang      Heping        100%   120,333       360,999     55,894    67,084    67,084
                          Hunnan New
    The Paradiso, Shenyang                  100%   226,356       601,439     87,489   106,843   414,396
                          District
    Tomorrow City,            Hunnan New
                                        70%    199,319       597,957     79,335    89,725    89,725
    Shenyang                  DistrictPark Residence,
                          Shenhe        55%     83,229       290,681          -    14,775   121,872Shenyang
    Chunheli, Shenyang        Shenhe        82%     81,378       431,232     43,374    19,643    76,484Whistler (惠斯勒小镇),
                          Dongling      70%    285,599       286,141          -    60,703    60,703ShenyangBlue Mountain ,
                          Dadong        60%     78,367       235,102          -   102,224   235,102ShenyangSpring Dew Mansion
    (Long Mansion),           Tiexi         70%     66,547       178,598          -    85,420    85,420ShenyangSpring Dew Mansion
    (Run Mansion) ,           Tiexi         100%    57,030       150,315          -         -         -ShenyangLakeside Grand View
    (香湖盛景) North,         Yuhong        49%    190,156       342,360     85,780    31,050    92,046ShenyangLakeside Grand View
    (香湖盛景) South,         Yuhong        51%    135,464       304,520          -         -     8,816Shenyang
    Park Avenue, Shenyang     Yuhong        100%   169,774       407,374    134,642         -         -Holiday Views,
                          Huanggu       100%   200,000       475,936          -         -         -Shenyang
                          Development
    The Paradiso, Fushun      District
                                        100%   300,150      1,034,003         -    68,840   113,279Jinyu International(金
                          Shuncheng     100%    72,560       316,582    101,429         -         -域国际), FushunYinkou Habor(营口海
                          Bayujuan      100%   138,990       399,449     73,888         -         -港城), Shenyang
    Whistler Town, Anshan     Tiedong       100%   422,171       713,400     63,539    74,591   263,494
    Dream Town, Anshan        Gaoxin        100%   167,664       375,002          -   109,286   316,813Jinyu Internationl,
                          Tiexi         51%    225,715       677,000     67,520         -         -Anshan
                                                  Page 19
    Ravine Village, Dalian   Ganjingzi    100%   363,716       380,922          -    32,174   380,922A Glamorous City,
                         Ganjingzi    100%   218,498       443,186          -    65,628   443,186DalianSpring Dew Mansion,,
                         Ganjingzi    100%   118,506       229,822     49,319         -         -Dalian
    Xishan Project, Dalian   Ganjingzi    55%     90,404        91,308          -         -         -
    Blue Mountain, Dalian    Ganjingzi    100%   125,100       214,470    134,095         -         -Dalianmen Project,
                         Ganjingzi    100%    19,131        37,627          -         -         -Dalian
                         Puwan New
    Habor, Dalian                         55%    581,172       968,300     27,886   101,621   101,621
                         District
                         High-TechCherry Blossom
                         Industrial   71%    192,248       363,349          -         -         -Garden, Dalian
                         Zone
    Dream Town, Dalian       Jinzhou      100%   284,806       620,607    145,390         -         -Chenghua East Project,
                         Shahekou     100%    35,757        64,260          -         -         -DalianBlue Mountain,
                         Erdao        100%   228,670       501,678     50,555   131,541   266,931ChangchunWhistler Town (惠斯勒
                         Jingyue      50%    399,715       484,714     68,672    31,803   111,629小镇), ChangchunDream Town,
                         Jingyue      51%    350,965      1,068,964   100,022   124,574   124,574ChangchunPark Residence,
                         Chaoyang     100%   267,981       503,349      7,174    53,553   165,142ChangchunScupture Park Project,
                         Nanguan      50%    121,109       343,058     45,291         -         -Changchun
    Dream Town, Jinlin       Gaoxin       65%    728,139      2,001,721   112,811   148,898   427,316Songhua Lake Project,
                         Fengman      100%   531,598       681,890          -         -         -JinlinA Glamorous City,
                         Chengyang    80%    200,289       341,136          -         -   341,136Qingdao
    City Garden, Qingdao     Chengyang    80%    130,873       231,482          -    48,904   231,482Rose Lane (玫瑰里),
                         Chengyang    51%    340,069       540,307    171,210         -         -QingdaoChunyang Garden (春
                         Chengyang    51%     86,493       183,142     68,262         -         -阳花园), QingdaoTaohuayuan (桃花源) ,
                         Chengyang    80%    129,032       230,194          -         -         -Qingdao
    Aureate City,Qingdao     Shibei       100%    61,873       173,945          -         -   173,945
    Dream Town, Qingdao      Shibei       55%    154,607       392,904     87,705   112,311   229,093Vanke Centre, Fuzhou
                         Shibei       100%    38,775       123,703    123,703         -         -Road, QingdaoVanke Centre,
    Shandong Road,           Shibei       70%     18,646        70,486     70,486         -         -Qingdao
    Blue Mountain,Qingdao    Shibei       100%    68,153       208,462     17,778    67,805   145,712
    Zitai, Qingdao           Shibei       100%    68,562       204,603          -         -         -Ecological
                         Licang       100%   141,346       261,571          -   247,960   247,960Town, Qingdao
    Qingdao Town             Huangdao     34%    933,293       702,304          -    63,255    63,255
    Dongjun, Qingdao         Jimo         55%    196,446       430,183     17,010         -         -Dream Town, Pingdu,
                         Pingdu       51%     59,308       197,931     25,771         -         -QingdaoPingdu New City,
                         Pingdu       51%     75,701        97,496          -         -         -Qingdao
    Haiyuntai, Yantai        Zhifu        100%   311,614       444,000          -    47,840   113,986
    Holiday Views, Yantai    Fushan       70%    190,281       362,813          -    74,438   153,787Holiday Dew Garden,
                         Fushan       70%     65,733       152,466          -         -         -Yantai
                                                Page 20Yulongshan (御龙山),
                          Zhifu             51%      341,943         615,200     106,278            -              -Yantai
                          Development
    Dream Town,Yantai         District
                                            51%      241,167         627,813      87,713            -              -Jiyu International(金域
                          Gaoxin            63%      127,759         408,346     116,976            -              -国际), Jinan
    Dream Town, Jinan         Lixia             50%      191,418         478,545     138,390            -              -
    New Milestone,Jinan       Licheng           100%     113,132         316,728            -           -              -
    Zitai, Taiyuan            Yingze            51%       95,687         334,330      85,072     136,224      136,224Jinyu Internationl,
                          Wanbolin          100%      49,407         169,679            -    169,679      169,679Taiyuan
    Blue Mountain, Taiyuan    Wanbolin          51%      198,392         693,540      48,425            -              -Transportation
    Company Land Lot (公      Wanbolin          100%      37,060         177,415            -           -              -交公司地块) , TaiyuanSpring Dew Mansion,
                          Yuci              51%      218,143         476,596     109,824     105,910      105,910Jinzhong
    Beijing Region subtotal                            21,241,967      39,897,286   4,368,722   3,690,212   11,079,767Chengdu RegionA Glamorous City,
                          Chenghua          60%      308,501         761,258            -     96,773      712,816ChengduVanke Diamond Plaza,
                          Chenghua          85%       15,404          92,422            -           -              -ChengduVanke Huamao Plaza,
                          Chenghua          51%       29,720         214,137     207,600            -              -ChengduJinse Yuefu MusicPlaza,
                          Chenghua          60%      152,852         759,036     304,088            -              -(金色乐府音乐广场),Chengdu.Jinyu Xiling (金域西
                          Jinniu            60%       79,331         361,100            -     92,620      361,100岭), ChengduGolden Domain,
                          Qingyang          100%      49,628         244,459            -    118,673      190,524Chengdu
    Jinrun Huafu, Chengdu     Jinjiang          100%      52,895         267,928            -    119,942      236,427Golden Hairong,
                          Wuhou             49%       54,970         234,125            -           -     141,161ChengduWulong Mountain
                          Xindu             100%     345,168         356,503      35,820     130,793      251,541Garden, Chengdu
    Jinyu Tixiang,Chengdu     Xindu             100%     111,166         331,161     146,209            -              -Jinyu Mingdi
                          Gaoxin            50%       48,345         145,034      59,774            -              -(金域名邸), ChengduNo. 5 Park Front
    Boutique Apartment,       Gaoxin            50%       87,822         263,464      30,483            -              -Chengdu
    Golden City,Chengdu       Longquanyi        55%       72,102         288,410     202,758            -              -
    Aureate City,Chengdu      Longquanyi        55%       47,245         141,642     141,642            -              -Haiyue Huicheng,
                          Shuangliu         90%      104,307         524,843            -    143,609      206,007ChengduJinrun Huafu,
                          Gaoping           60%      182,012         518,004      48,855       2,732        2,732NanchongKing Metropolis,
                          Wuchang           100%      59,790         191,300            -     34,701      140,020WuhanHanyang International,
                          Hanyang           70%      166,817         568,974      99,813     104,983      104,983Wuhan
    Dream Town, Wuhan         Jianghan          100%      65,901         299,337            -     90,973      231,798Huanzi Lake Project,
                          Jianghan          100%       7,388          36,683      32,684            -              -WuhanHankou Chuanqi
                          Jianghan          50%       42,385         228,430     228,430            -              -(汉口传奇), Wuhan
                          East Lake High-
                          Tech
    Stratford, Wuhan          Development
                                            100%     230,894         349,607            -    161,401     349,607
                          Zone
                                                         Page 21
    Liantou Vanke               East Lake High-
                            Tech
    Ecological Town,            Development
                                              50%    199,709      299,563         -         -         -
    Wuhan                       Zone
                            East Lake High-
    Luxuriant Scenery (城       Tech
                                              50%     89,665      409,600   156,049         -         -
    花璟苑) ,Wuhan              Development
                            Zone
                            East Lake High-
    Jiayuan (嘉园), Wuhan       Tech
                            Development
                                              50%     67,259      324,100         -         -         -
                            Zone
                            East Lake High-
                            Tech
    Jincheng (锦程), Wuhan      Development
                                              100%    38,286      202,620         -         -         -
                            Zone
                            Economic and
                            Technological
    The Paradiso, Wuhan         Development
                                              100%   213,440      533,600   246,384    87,072   229,368
                            Zone
    Golden City, Wuhan          Hongshan          100%   273,850      896,484   200,540   394,393   446,823Changzheng Village
                            Hongshan          100%   282,235      871,721   108,964         -         -Project, WuhanChongqing Youcheng
                            Yubei             51%    229,581      344,372         -    23,022   328,210Ecological GardenJincheng (锦程),
                            Yuzhong           100%   105,406      533,486         -   395,325   533,486Chongqing
    Wonder Town,                Northern New
                                              100%    41,448      145,067         -         -   145,067
    Chongqing                   District
    Palace of Pleasure,         Northern New
                                              100%   137,996      376,737         -   151,884   215,449
    Chongqing                   District
    Dream Town,                 Northern New
                                              55%    278,167      647,378   286,838         -         -
    Chongqing                   District
    Yuewan, Chongqing           Jiangbei          45%    435,499      649,158   215,193         -         -
    Gailanxi, Chongqing         Jiangbei          100%   129,535      652,785         -         -         -Ertang Project,
                            Nan’an           49%    241,314      845,611         -         -         -ChongqingJoying Gold,
                            Shapingbei        80%    175,000      700,000   331,677         -         -ChongqingVanke Xijiu (万科西
                            Jiulongpo         50%     26,515      145,688    69,481         -         -九), ChongqingVanke Xicheng (万科西
                            Jiulongpo         100%    60,276      271,207   142,921         -         -城), Chongqing
    Jinyu Qujiang (金域曲       Qujiang New
                                              55%    152,667      390,176     4,768   164,140   332,249
    江), Xi’an                 DistrictLand Lot 7#Dream
                            Chang’an         85%    186,849      619,806     5,429   193,426   293,752Town, Xi’an
    Land Lot 3#Dream            Chang’an
                                              60%    113,231      352,802    61,329         -         -Town, Xi’an
    Land Lot 8#Dream            Chang’an
                                              100%   172,666      504,464         -         -         -Town, Xi’an
    King Metropolis, Xi’an     Weiyang           51%    106,667      372,461    77,233         -         -Daminggong Project,
                            Weiyang           70%     69,052      221,603         -         -         -Xi’an.
    Joying Gold, Xi’an         Lianhu            80%    193,571      664,643    92,146         -         -Joying Gold DK1,
                            Lianhu            100%    36,708      146,831         -         -         -Xi’an
    Jiyu International,Xi’an   Gaoxin            100%    23,831      150,132         -         -         -
                            ChanbaEastern
                            Ecological        100%   175,387      686,388         -         -         -Metropolis,Xi’an
                            DistrictVanke Meijing
    Longmen Longtang,           Guancheng         51%     79,457      351,529   134,224         -         -ZhengzhouMeiming Science and
    Technology Industrial       Gaoxin            51%    130,818      457,863         -         -         -Park (美铭科技产业
                                                        Page 22园), ZhengzhouVanke Meijing Dream
                         Gaoxin          51%       190,319        542,359      188,887              -                  -Town, ZhengzhouVanke Meijing
                         Aviation Port
    Glamorous City,                          51%       182,560        468,407             -             -                  -
                         AreaZhengzhouKing Metropolis,
                         Xiaohe          51%       351,800        581,217             -             -         255,392GuiyangMetropolis(大都会),
                         Xiaohe          51%       181,235        761,187      138,181              -                  -Guiyang
    Nimble Bay, Guiyang      Yunyan          100%       81,246        200,705       43,245              -              7,802Joy City(悦城),
                         Yunyan          51%        85,341        262,728       85,262              -                  -Guiyang
    Dream Town, Guiyang      Yunyan          30%       348,117        910,910      347,884              -                  -No. 5 Park Front
    Boutique                 Yunyan          70%        10,927         98,132       26,646              -                  -Apartment,GuiyangDew Garden (润园),
                         Panlong         100%      192,104        247,394       40,097         72,502             75,887Baisha, KunmingYunshangcheng,
                         Wuhua           23%        34,293        177,468             -        12,772             12,772KunmingRespecte Chateau (金色
                         Gaoxin          67%       105,484        423,175       63,430         39,416         150,270领域), KunmingA Glamorous
                         Guandu          55%       417,919       1,662,861     343,747              -                  -City,Kunming
    Park Avenue, Kunming     Guandu          50%       290,724        580,438             -             -                  -King Metropolis,
                         Xinshi          82%        77,425        245,780      106,771        115,004         115,004Urumqi
                         Urumqi
                                         100%       32,298         14,900        5,018              -                  -
    Nanshan Villa, Urumqi    CountyJinyu International,
                         Shayibake       100%       24,150         60,376       60,376              -                  -Urumqi
    Jinyu Tixiang, Urumqi    Shayibake       100%       20,078         50,196             -             -                  -Rancho Santa
                         Shayibake       60%       204,628        204,628      148,761              -                  -Fe,Urumqi
    Central Park, Urumqi     Shuimogou       100%        80,698       201,745             -             -                -
    Chengdu Region subtotal                           9,692,074    28,640,338     5,269,637     2,746,156        6,070,247
                      Total                      66,012,793   135,424,217    21,306,918    13,032,016       34,802,555
    3. Major Suppliers and Customers
    (1) The aggregate purchase amount from the Company’s five largest suppliers as a percentage of total
    purchase during the year
    In 2013, the Company continued to expand the scope of sourcing and deepen relationship with its partners to
    further increase the proportion of centralised procurement and strategic collaborations, with an aim to achieve
    economic benefits of bulk purchase.During the year under review,the aggregate purchase amount from the
    Company’s five largest material and equipment suppliers was RMB2.91billion, representing an increase of 9.12%
    from that of 2012 and accounting for 2.86% of the total purchase for the year, which was 0.75 percentage point
    lower than that of 2012’s.
    (2) The aggregate revenue from the Company’s five largest customers as a percentage of total revenue
    during the year
    The Company’s product is commodity housing. The majority of the Company’s customers are individual
    homebuyers making up a vast and diversified customer base. Only certain projects constructed for the government
    or a small number of group purchase transactions generated a relatively high sales amount. Revenue from the five
    largest customers in 2013 amounted to approximately RMB2.82 billion, accounting for 2.08% of the Company’s
    total revenue of 2013.
    4.Financial Status of the Company
    During the year under review, the Company’s operations remained stable and its financial position was sound.
                                                       Page 23
                                                                                                           Unit:RMB’000
                    Item                     31-Dec-13          31-Dec-12        Change (+/-)             Reasons for changes
    Total Assets                                 479,474,818        379,094,856           26.48%      Expansion of the operational scale.
                                                                                                  Increase in expenditure for
    Cash and cash equivalents                     43,004,149         51,120,224          -15.88%           constructure and acquisition of
                                                                                                       projects.
                                                                                                  Increase in newly added projects and
    Inventories                                  329,731,930        253,622,152           30.01%
                                                                                                       projects under development
                                                                                                  Increase in investment on
    Investment proporties                          6,366,655          1,714,136          371.42%
                                                                                                       commercial property.
                                                                                                  Increase in pre-sales and
    Trade and other payables                     287,930,076        215,529,570           33.59%
                                                                                                       payablesdue to the constructors.Equity attributable to equity shareholders
                                              76,895,983         63,825,554           20.48%      Increase in net profit
    of the Company
                   Item                      Year 2013          Year 2012        Change (+/-)             Reasons for changes
    Revenue                                      127,453,765         96,859,914           31.59%      Increase in booked sales
    Cost of sales                                 92,814,352         65,454,228           41.80%      Increase in booked sales
    Profit before taxation                        27,847,233         25,697,537            8.36%      Increase in operating profit
    Income tax                                     9,549,684         10,034,949            -4.84%     Decrease in gross profitProfit attributable to equity shareholders
                                              15,118,549         12,551,182           20.45%      Increase in profit before taxes
    of the Company
                    Item                     Year 2013          Year 2012        Change (+/-)             Reasons for changes
    Gearing ratio                                     78.01%            78.32%            -0.31%      Increasse in pre-sales
    Current ratio                                           1.34              1.40          -0.06     Increase in receipts in advance
    Quick ratio                                             0.34              0.41          -0.07     Increase in receipts in advance
    Equity ratio                                      22.00%            21.68%             0.32%      Increase in collaborative projects
    Accounts receivable turnover (Day)                   6.69              6.21              0.48     Increase in booked sales
    Inventory turnover (Day)                           1,147                 1,293           -146   Increase in inventory turnover
                    Item                      31-Dec-13             31-Dec-12         Change (+/-)          Reasons for changes
                                             479,474,818           379,094,856          26.48%           Expansion of the operational
                Total Assets
                                                                                                                      scale.
                                             43,004,149            51,120,224           -15.88%           Increase in expenditure for
        Cash and cash equivalents                                                                       constructure and acquisition of
                                                                                                                    projects.
                                             329,731,930           253,622,152          30.01%              Increase in newly added
                 Inventories                                                                              projects and projects under
                                                                                                                  development
                                              6,366,655             1,714,136           371.42%            Increase in investment on
          Investment proporties
                                                                                                              commercial property.
                                             287,930,076           215,529,570          33.59%              Increase in pre-sales and
        Trade and other payables                                                                               payablesdue to the
                                                                                                                  constructors.
    Equity attributable to equity shareholders   76,895,983            63,825,554           20.48%
                                                                                                             Increase in net profit
             of the Company
                   Item                       Year 2013             Year 2012         Change (+/-)           Reasons for changes
                  Revenue                    127,453,765           96,859,914           31.59%             Increase in booked sales
                Cost of sales                92,814,352            65,454,228           41.80%             Increase in booked sales
          Profit before taxation             27,847,233            25,697,537            8.36%            Increase in operating profit
                Income tax                    9,549,684            10,034,949            -4.84%             Decrease in gross profit
    Profit attributable to equity shareholders    15,118,549           12,551,182           20.45%
                                                                                                         Increase in profit before taxes
             of the Company
                   Item                       Year 2013             Year 2012         Change (+/-)           Reasons for changes
                Gearing ratio                  78.01%                78.32%              -0.31%              Increasse in pre-sales
                Current ratio                    1.34                    1.40            -0.06          Increase in receipts in advance
                Quick ratio                      0.34                    0.41            -0.07          Increase in receipts in advance
                                               22.00%                21.68%              0.32%             Increase in collaborative
                Equity ratio
                                                                                                                    projects
                                                               Page 24
    Accounts receivable turnover (Day)                 6.69                   6.21                0.48             Increase in booked sales
       Inventory turnover (Day)                     1,147                  1,293                -146         Increase in inventory turnover5. Investment of the Company(1) Use of proceeds from the capital marketPublic issue of A Shares in 2007Having obtained the approval from the relevant authorities, the Company issued a prospectus regarding thepublicissue of A shares on 22 August 2007. The Company issued 317,158,261 shares (par value: RMB1 pershare) at anissue price of RMB31.53 per share, raising proceeds of RMB9,999,999,969.33. After deductingissuing expensesof RMB63,398,268.11, the net proceeds amounted to RMB9,936,601,701.22 and were received on 30 August2007. Shenzhen Nanfang-Minhe CPA Firm Co., Ltd (深圳南方民和会计师事务所) had prepared and filed acapital verification report (Shen Nan Yan Zi (2007) No. 155).The aforesaid proceeds were used to invest in 11 projects. Details on the investment amount, investment gain,development progress of the projects as of 31 December 2013 are as follows:
                                                                                                                             Unit: RMB’000
                                                                           Funds used for investment during the
    Total amount of proceeds raised, net                          9,936,600                                                                  2,300
                                                                                           yearTotal amount of proceeds with
                                                                       0changed usage
                                                                              Total accumulated funds used                         9,833,800Percentage of total proceeds with
                                                                     0%changed usage
                                         Is there              Funds
                                                  Amount of                          Progress                         Does it      Is there
                                           any                used for                          Accumulated
                                                    funds               Accumulated      of                           achieve    significant
         Investment projects             change             investment                            realized
                                                   planned               funds used application                      estimated   change in
                                            in               during the                           income
                                                   for use                           of funds                         income     feasibility
                                         project                yearEverest Town (former Science City H3
                                           No       600,000                    600,000   100%          145,110         Yes          NoProject), GuangzhouThe Paradiso (former Jinshazhou
                                           No       800,000                    800,000   100%          1,027,800       Yes          NoProject), GuangzhouThe Dream Town (former Nanzhuang
                                           No       900,000                    900,000   100%           525,630        Yes          NoProject), FoshanZhuhai Hotel Project, Xiangzhou
                                           No       650,000                    650,000   100%           884,230        Yes          NoDistrict, ZhuhaiWest Spring Butterfly Garden (former
                                           No       700,000                    700,000   100%          1,820,520       Yes          NoJiangcun Project), HangzhouLiangzhu Project, Yuhang District,
                                           No     1,700,000                  1,700,000   100%           944,360        Yes          NoHangzhouGolden Town Project, Yinzhou
                                           No     1,636,600                  1,636,600   100%           880,480        Yes          NoDistrict, Ningbo
    Wujiefang, Pudong, Shanghai                No     1,200,000                  1,200,000   100%           229,230        Yes          NoJinse Yazhu (former Zhonglin Project),
                                           No       700,000                    700,000   100%           272,810        Yes          NoShanghaiAnpin Street Project, Baixia District,
                                           No       650,000       2,300        547,200    84%                    -     Yes          NoNanjingStratford (former Huangjiayu Project),
                                           No       400,000                    400,000   100%            52,300         No          NoNanjing
                 Total                      No     9,936,600     2,300 9,833,800 99%               6,782,470       -             No
                                         (1)Nanjing Anpin Street Project was not able to commence construction according to schedule,
                                         as the government was making adjustment to its planning to preserve the city’s heritage. The
                                         relevant planning has now been approved. The overall development plan of the project was
                                         adjusted accordingly.
    Remarks on delay and failure to       (2) Stratford Project in Nanjing was basically sold out, with properties delivered in 2010.achieve estimated income (by project) Accumulative net margin amounted to 8.68%. The project had achieved brand effect but the
                                      income generated from the project did not reach the estimated level stated in the prospectus.
                                         The income of other projects financed by the raised proceeds exceeded or is expected to exceed
                                         the estimated level. The overall return from the projects financed by the raised proceeds will be
                                         higher than the estimated level stated in the prospectus.
                                                                 Page 25
          Remarks on reasons and procedures
                                              No changes
          for changes (by project)
                                              As of 31 December 2013, the Company had applied RMB9,833.80 millionof the proceeds in
          Application of the balance of the   accordance with the prospectus. The amount represented 98.97% of the net proceeds of
          proceeds                            RMB9,936.60 million. The balance of the proceeds of RMB102.80 millionwill be applied in
                                              accordance with the progress of project development.
          (2) Use of capital not from the capital market
          A. Equity investment
          During the year under review, the Company’s new additional investment amounted to RMB12,401million, which
          were used as follows:
          1) During the year under review, the Company promoted and established 28 new subsidiaries, each withregistered
          capital of over RMB30 million, and actual investment had been made. The details are as follows:
                                                                                                   Actual investment
                                                                                  Registered
    No.             Name of the newly established company              Currency                            by Vanke              Scope of business
                                                                                   capital
                                                                                                        (RMB)
      Shanghai Wanjiu Luhe Property Co., Ltd.
    1                                                                     RMB       1,800,000,000.00    918,000,000.00      Property development
      上海万九绿合置业有限公司
      Wenzhou Vanke Zhongliang Property Co., Ltd.
    2                                                                     RMB        500,000,000.00      300,000,000.00     Property development
      温州万科中梁置业有限公司
      Changzhou Vanke Real Estate Co., Ltd.
    3                                                                     RMB        500,000,000.00      500,000,000.00     Property development
      常州万科房地产有限公司
      Hangzhou Wanzhou Property Co., Ltd.
    4                                                                     RMB        450,000,000.00      228,357,823.57     Property development
      杭州万洲置业有限公司
      Qingdao Vanke Real Estate Development and Construction
    5     Co., Ltd.                                                       RMB        430,000,000.00      219,300,000.00     Property development
      青岛万科房地产开发建设有限公司
      Qingdao Vanke YinShengtai Property Co., Ltd.                                                                      Property development and
    6                                                                     RMB        380,000,000.00      304,000,000.00
      青岛万科银盛泰置业有限公司                                                                                        interior decoration works
      Beijing Shoukai Vanke Property Co., Ltd.
    7                                                                     RMB        360,000,000.00       36,000,000.00     Property development
      北京首开万科置业有限公司
      Nanning Vanke City Real Estate Co., Ltd.
    8                                                                     RMB        200,000,000.00      200,000,000.00     Property development
      南宁市万科城房地产有限公司
      Nanning Wanrong Real Estate Co., Ltd.
    9                                                                     RMB        200,000,000.00      200,000,000.00     Property development
      南宁市万荣房地产有限公司
      Hangzhou Wanjue Property Co., Ltd.
    10                                                                    RMB        200,000,000.00      200,000,000.00     Property development
      杭州万爵置业有限公司
      Suzhou Wanjin Real Estate Co., Ltd.
    11                                                                    RMB        200,000,000.00      102,000,000.00     Property development
      苏州万金房地产有限公司
      Qingdao Xinduxin Property Co., Ltd.
    12                                                                    USD        164,000,000.00     1,008,962,600.00    Property development
      青岛新都心置业有限公司
      Hangzhou WanTing Property Co., Ltd.
    13                                                                    RMB        150,000,000.00       90,000,000.00     Property development
      杭州万霆置业有限公司
      Jiaxing Wanlian Real Estate Development Co., Ltd.
    14                                                                    RMB        150,000,000.00      150,000,000.00     Property development
      嘉兴万联房地产开发有限公司
      Ningbo Wanjiang Property Co., Ltd.
    15                                                                    USD        137,000,000.00      491,073,284.00     Property development
      宁波万江置业有限公司
      Quanzhou Vanke Beifeng Real Estate Co., Ltd.
    16                                                                    RMB        120,000,000.00       72,000,000.00     Property development
      泉州市万科北峰房地产有限公司
      Nanning Vanke Investment Co., Ltd.
    17                                                                    RMB        120,000,000.00      120,000,000.00     Property investment
      南宁市万科投资有限公司
      Zhengzhou Vanke Meijing Real Estate Development Co., Ltd.
    18                                                                    RMB        100,000,000.00       51,000,000.00     Property development
      郑州万科美景房地产开发有限责任公司
      Nanning Vanke Wuxiang Real Estate Co., Ltd.
    19                                                                    RMB        100,000,000.00      100,000,000.00     Property development
      南宁市万科五象房地产有限公司
      Shanghai Wanzhijiang Real Estate Development Co., Ltd.
    20                                                                    RMB        100,000,000.00       90,000,000.00     Property development
      上海万之江房地产开发有限公司
      Ningbo Wanqi Property Co., Ltd.
    21                                                                    USD        76,000,000.00       226,432,195.00     Property development
      宁波万启置业有限公司
                                                                    Page 26
    Beijing Tianzhu Vanke Property Co., Ltd.
    22                                                            RMB       70,000,000.00      20,370,000.00   Property development
    北京天竺万科置业有限公司
    Beijing Shoukai VankeHetai Property Co., Ltd.
    23                                                            RMB       68,000,000.00      34,000,000.00   Property development
    北京首开万科和泰置业有限公司
    Chongqing Forest River Garden Property Co., Ltd.
    24                                                            USD       64,288,000.00      60,025,841.21   Property development
    重庆林畔花园置业有限公司
    Qingdao Vanke YinShengtai Investment Co., Ltd.                                                        Property development, sales
    25                                                            RMB       50,000,000.00      35,000,000.00
    青岛万科银盛泰投资有限公司                                                                            and property management
    Ningbo Wanming Property Co., Ltd.
    26                                                            RMB       50,000,000.00     40,860,000.00    Property development
    宁波万明置业有限公司
    Boshang Asset Management Co., Ltd.                                                                    Asset management and
    27                                                            RMB       50,000,000.00     50,000,000.00
    博商资产管理有限公司                                                                                  investment management
    Changsha Vanke Xibu Property Co., Ltd
    28                                                            RMB       30,000,000.00     30,000,000.00    Property development
    长沙市万科西部置业有限公司
                             Total                                                      5,877,381,743.78
         In addition, the Company had established another 92new companies, with a total investment amount of RMB413
         million.
         2) The major companies that the Company acquired during the year under review are as follows:
         A. On 18March 2013, the Company acquired 100% equity interests of Beijing Kaide Xinming Real Estate
         Development Co., Ltd. for a cash consideration of RMB502 million.
         B. On 1January 2013, the Company acquired 60% equity interests in Shenzhen Shangmo Development Co.,
         Ltd.for a cash consideration of RMB465 million.
         C. On 18January 2013, the Company acquired 80% equity interests in Changsha Vanke Universal Village Property
         Co., Ltd. for a cash consideration of RMB347 million. Changsha Vanke Universal Village Property Co., Ltd. holds
         100% equity interests in Hunan Xiangcheng Yibai Land Co., Ltd. and Changsha Jingtou Yintai Property
         Management Co., Ltd.
         D. On 1 April 2013, the Company acquired 51% equity interests in Hunan Baihui InvestmentCo., Ltd. for a cash
         consideration of RMB315 million.
         E. On 18September 2013, the Company acquired 83% equity interests in Guangzhou Rongda Household
         Appliances Co., Ltd. for a cash consideration of RMB253 million.
         F. On 25 January 2013, the Company acquired 51% equity interests in Beijing Jingtou Yangguang RealEstate
         Development Co., Ltd. for a cash consideration of RMB136 million.
         G. On28January 2013, the Company acquired 100% equity interests in Henan Meijing Zhizhou Real Estate
         Development Co., Ltd. for a cash consideration of RMB100 million.
         During the year under review, the Company acquired another 20companies for a total consideration of
         RMB435million.
         3) During the year under review, the Company increased the capital of 17 subsidiaries by RMB3,438 million,
         among which, RMB1,200 million was for Zhejiang Zhenan Vanke Real Estate Co., Ltd. (浙江浙南万科房地产有
         限公司), RMB281 million for Hangzhou Wanhong Property Co., Ltd. (杭州万泓置业有限公司), USD89 million
         for Vanke Properties (Hong Kong) Co., Ltd. (万科置业地产(香港)有限公司), RMB250 million for Zhejiang
         Shudou Investment Management Co., Ltd. (浙江墅都投资管理有限公司), RMB230 million for Nanjing Railway
         Station East Property Co., Ltd. (南京站东置业有限公司), RMB230 million for Nanjing Wanrong Property Co.,
         Ltd.(南京万融置业有限公司), RMB230 million for Tianjin Wanshang Real Estate Investment Co., Ltd. (天津万
         商地产投资有限公司), RMB174 million for Shanghai Wanrong Property Co., Ltd. (上海万茸置业有限公司)
         and RMB292 million for other subsidiaries
                                                            Page 27
    B. Project investments
    During the year under review, the Company acquired 104 new development projects, with a site area attributable
    to Vanke’s equity holding of approximately 7,570,000 sq m, representing aplanned GFA of approximately
    21,480,000 sq m.
                                                                                                     Unit: sq m
                                                                                                  GFA
                                                                                              attributable
                                                                                  Planned
                                                      % of           Site area                 to Vanke’s
    No.       City            Project         Location                                  GFA                       Progress
                                                      shareholding    (sq m)                     equity
                                                                                   (sq m)
                                                                                                 holding
                                                                                                 (sq m)
                   Liuxiandong                                                                               Pre-
    1       Shenzhen                      Nanshan               100%       394,044    1,335,510      1,335,510
                   (留仙洞)                                                                                  construction
                   Bayifu (八意                                                                              Under
    2       Shenzhen                      Longgang              100%         28,894     115,040        115,040
                   府),                                                                                      construction
                                                                                                             Under
    3       Dongguan   Vanke Centre       Guancheng               55%        53,887     215,547        118,551
                                                                                                             construction
                   Songhu
                   Chuanqi (松湖                                                                             Under
    4       Dongguan                      Liaobu Town           100%         68,431     150,548        150,548
                                                                                                             construction
                   传奇)
                                                                                                             Under
    5       Dongguan   Jinyu Huating      Guancheng               55%         9,185      29,393         16,166
                                                                                                             construction
                   Dream Town,                                                                               Pre-
    6       Dongguan                      Humen Town              80%      349,805      784,136        627,308
                   Humen                                                                                     construction
                   Land
                                                                                                             Pre-
    7      Guangzhou   LotAF020122,       Liwan                 100%          7,141      30,706         30,706
                                                                                                             construction
                   Xinlongsha
                   Huangge                                                                                   Pre-
    8      Guangzhou                      Nansha                100%       156,555      250,488        250,488
                   Avenue Project                                                                            construction
                   Huashan                                                                                   Pre-
    9      Guangzhou                      Huadu                   50%      126,941      279,270        139,635
                   Project                                                                                   construction
                                                                                                             Pre-
    10      Qingyuan   Dream Town         Qingcheng             100%       493,076      986,153        986,153
                                                                                                             construction
                   Land Lot B23-
                                                                                                             Pre-
    11       Foshan    24 Finance         Nanhai                100%       188,996      793,784        793,784
                                                                                                             construction
                   District C
                   Land Lot B21,
                                                                                                             Pre-
    12       Foshan    Finance District   Nanhai                100%         30,984     130,000        130,000
                                                                                                             construction
                   C
                   Land Lot A32
                                                                                                             Pre-
    13       Foshan    Finance District   Nanhai                100%         25,178     146,000        146,000
                                                                                                             construction
                   C
                   Binfen Xiyuan
    14       Foshan                       Shunde                100%         43,748     153,000        153,000   Sold
                   (缤纷西园)
                   Qingxi Road                                                                               Pre-
    15     Zhongshan                      Shiqi                   75%      143,852      429,779        322,334
                   Project                                                                                   construction
                   The Dream                                                                                 Under
    16      Quanzhou                      Fengze                  60%        46,434     162,518         97,511
                   Town I                                                                                    construction
                   The Dream                                                                                 Pre-
    17      Quanzhou                      Fengze                  60%        90,307     316,073        189,644
                   Town II                                                                                   construction
                   The Dream                                                                                 Pre-
    18     Zhangzhou                      Xiangcheng              60%      235,606      805,195        483,117
                   Town                                                                                      construction
                   Jinyu
                   Zhongyang(金                                                                              Pre-
    19      Quanzhou                      Shishi                  70%        82,769     211,503        148,052
                                                                                                             construction
                   域中央), Shishi
    20       Fuzhou    The Paradiso       Minhou County           51%      213,602      687,507        350,629   Sold
                   Meixihu (梅溪                                                                             Under
    21      Changsha                      Yuelu                 100%       129,323      311,937        311,937
                   湖)                                                                                       construction
                   Expanded Land
                   Lot 205,
                   Jingtou Yintai                                                                            Pre-
    22      Changsha                      Yuhua                   40%      108,857      326,572        130,629
                   (京投银泰 205                                                                             construction
                   扩容地块)
    23      Changsha   Jiyu               Yuelu                   51%      159,393      585,845        298,781   Under
                                                         Page 28
                 International,                                                               construction
                 Chengji                                                                      Under
    24   Changsha                      Yuhua                  40%   351,380   960,664   384,266
                 Xinyuan Project                                                              construction
                                                                                              Pre-
    25    Nanning    Vanke Building    Liangqing             100%    25,545   117,670   117,670
                                                                                              construction
                 Zhangjiang        Pudong New                                                 Pre-
    26   Shanghai                                             45%    24,756    74,269    33,421
                 West Land Lot     District                                                   construction
                 Zhangjiang East   Pudong New                                                 Pre-
    27   Shanghai                                             45%    79,548   216,569    97,456
                 Land Lot          District                                                   construction
    28   Shanghai    Dream Town,       Minhang                70%   129,571   308,670   216,069   Sold
                 Dream Town II,                                                               Under
    29   Shanghai                      Minhang                70%    81,044   193,163   135,214
                 (Land Lot 164)                                                               construction
                                                                                              Pre-
    30    Nanjing    Longxi Project    Jiangning             100%    36,043   107,606   107,606
                                                                                              construction
                                                                                              Pre-
    31    Nanjing    Jiudouhui II      Yuhuatai               80%    49,722   132,361   105,889
                                                                                              construction
    32    Suzhou     VC Small Town     Xiangcheng             51%   138,601   415,804   212,060   Sold
                                                                                              Pre-
    33   Changzhou   Dream Town,       Wujin                 100%    93,994   234,983   234,983
                                                                                              construction
                                   Huaqiao
                 Glamorous                                                                    Pre-
    34   Kunshan                       Development            92%   130,177   325,442   299,407
                 Garden                                                                       construction
                                   District
                 Land Lot P,
                                                                                              Pre-
    35   Xuzhou      Huaihai West      Quanshan               85%    20,744    76,779    65,262
                                                                                              construction
                 Project
                 Land Lots
                 KLMNO,                                                                       Pre-
    36   Xuzhou      Huaihai West
                                   Quanshan               85%    62,920   252,081   214,268
                                                                                              construction
                 Project
                 Land Lot H2J,
                                                                                              Pre-
    37   Xuzhou      Huaihai West      Quanshan               85%    13,807    30,131    25,611
                                                                                              construction
                 Project
                 Land Lot A,
                                                                                              Pre-
    38   Xuzhou      Huaihai West      Quanshan               85%    38,666   150,727   128,118
                                                                                              construction
                 Project
                 Xiaoshan                                                                     Pre-
    39   Hangzhou                      Xiaoshan               50%    67,425   188,790    94,395
                 Project                                                                      construction
                 Vanke Dajia
    40   Hangzhou    Qiantang          Jianggan               50%    51,945   135,057    67,529   Sold
                 Mansion
                 Qinjiang New                                                                 Pre-
    41   Hangzhou                      Jianggan              100%    21,915    76,703    76,703
                 Town                                                                         construction
                 Liangzhu New                                                                 Pre-
    42   Hangzhou                      Yuhang                 33%    56,286   140,715    46,436
                 Town                                                                         construction
                 Haishang
                 Chuanqi (海上     Economic
    43    Jiaxing                      Development Zone
                                                         100%    31,945    66,904    66,904   Sold
                 传奇)
                 Dream Town                                                                   Pre-
    44    Ningbo                       Zhenhai                49%    70,795   127,431    62,441
                 East                                                                         construction
                 Legend On
                                                                                              Under
    45    Ningbo     Midtown(金域      Yinzhou                55%    43,752   100,630    55,346
                                                                                              construction
                 传奇)
                                                                                              Under
    46    Ningbo     Park Avenue       Gaoxin                 82%    48,004   105,609    86,304
                                                                                              construction
                 Jinyuzhongyang
    47   Wenzhou                       Ouhai                  60%    53,765   144,939    86,963   Sold
                 (金域中央)
                 Legend On
                                                                                              Under
    48   Wenzhou     Midtown (金域     Longwan                51%    45,864   128,396    65,482
                                                                                              construction
                 传奇)
                 Haishang
                                                                                              Pre-
    49     Wuhu      Chuanqi           Yijiang                49%   121,895   367,711   180,178
                                                                                              construction
                 Garden
                 Haishang
                 Chuanqi (海上                                                                Under
    50   Nanchang                      Gaoxin                 50%   163,213   355,802   177,901
                                                                                              construction
                 传奇)
                                                      Page 29
                Cuidieyuan (粹                                                           Under
    51   Nanchang                      Honggutan         50%    80,120   184,276    92,138
                叠园)                                                                    construction
                Changyang
                Tiandi (长阳天                                                           Pre-
    52    Beijing                      Fangshan          38%   112,673   208,351    79,173
                                                                                         construction
                地)
                Changyang
                BandaoCentral                                                            Pre-
    53    Beijing   Town(长阳半        Fangshan          35%    63,950   156,384    54,734
                                                                                         construction
                岛中央城)
                Tianzhu Joying
                City (天竺悦                                                             Under
    54    Beijing                      Shunyi            56%    17,985    31,051    17,389
                                                                                         construction
                城)
                Baoshui District
                                                                                         Pre-
    55    Beijing   Project,           Shunyi            97%    25,112    44,716    43,375
                                                                                         construction
                Tianzhu
                Gaoliying                                                                Pre-
    56    Beijing                      Shunyi            35%   187,830   170,568    59,699
                Project                                                                  construction
                Shoukai Vanke
                Centre (首开万                                                           Pre-
    57    Beijing                      Daxing            50%    41,092   126,996    63,498
                                                                                         construction
                科中心)
                Jinyu Park (金                                                           Under
    58    Beijing                      Fangshan          51%    27,528    55,056    28,079
                域公园)                                                                  construction
                Land Lots 010,
                014, 015, 017,                                                           Pre-
    59    Beijing                      Tongzhou          50%    88,767   210,738   105,369
                019 Park                                                                 construction
                Avenue
                Land Lot 007                                                             Pre-
    60    Beijing                      Tongzhou          35%    34,657   103,971    36,390
                Park Avenue                                                              construction
                Land Lots 005,
                                                                                         Pre-
    61    Beijing   008, 009 Park      Tongzhou          50%    61,717   123,434    61,717
                                                                                         construction
                Avenue
                No. 77 Beihe
    62    Beijing   Yanjia (北河沿     Dongcheng        100%     4,103    14,372    14,372   Sold
                甲)
                Wonderland,
    63    Tianjin                      Xiqing            51%   409,701   502,892   256,475   Sold
                Tianjin
                Park Residence,
                Meijiang (梅江                                                           Pre-
    64    Tianjin                      Hexi              80%    62,205   124,410    99,528
                                                                                         construction
                柏翠园)
                                                                                         Pre-
    65   Shenyang   Holiday Views      Huanggu          100%   200,000   475,936   475,936
                                                                                         construction
                                   Development                                           Under
    66    Fushun    The Paradiso                        100%    73,621   294,484   294,484
                                   District                                              construction
                Dream Town         Jinzhou New                                           Pre-
    67    Dalian                                        100%    16,223    43,153    43,153
                West Project       District                                              construction
                                                                                         Under
    68    Dalian    Blue Mountain      Ganjingzi        100%   125,100   214,470   214,470
                                                                                         construction
                Dalianmen                                                                Pre-
    69    Dalian                       Ganjingzi        100%    19,131    37,627    37,627
                Project                                                                  construction
                Chenghua East                                                            Pre-
    70    Dalian                       Shahekou         100%    35,757    64,260    64,260
                Project                                                                  construction
                                                                                         Pre-
    71   Qingdao    Zitai,             Shibei           100%    68,562   204,603   204,603
                                                                                         construction
                                                                                         Under
    72   Qingdao    Taohuayuan         Chengyang         80%   129,032   230,194   184,155
                                                                                         construction
                Phase II
                                                                                         Pre-
    73   Qingdao    Dongjun            Jimo              55%    84,102   180,379    99,209
                                                                                         construction
                Project
                Land Lot C,
                                                                                         Pre-
    74   Qingdao    Rose Lane (玫      Chengyang         51%    66,816   104,269    53,177
                                                                                         construction
                瑰里)
                Yulongshan(御                                                            Under
    75    Yantai                       Zhifu             51%   341,943   615,200   313,752
                龙山)                                                                    construction
                                   Development                                           Under
    76    Yantai    Dream Town                           51%   241,167   627,813   320,185
                                   District                                              construction
                                                 Page 30
                                                                                             Pre-
    77     Jinan     New Milestone     Licheng              100%   113,132   316,728   316,728
                                                                                             construction
                                                                                             Under
    78     Jinan     Dream Town        Lixia                 50%   191,418   478,545   239,273
                                                                                             construction
                 Land Lot B,
                                                                                             Under
    79     Jinan     Caoshanling       Gaoxin                63%    89,595   291,816   183,844
                                                                                             construction
                 (草山岭)
                 Transportation
                 Company Land                                                                Pre-
    80    Taiyuan                      Wanbolin             100%    37,060   177,415   177,415
                 Lot (公交公司                                                               construction
                 地块)
                                   Fenghuang New                                             Under
    81   Tangshan    New Milestone                           48%    88,848   264,659   127,036
                                   City                                                      construction
                 Land Lot A-04                                                               Under
    82   Tangshan                      Lubei                 40%    27,112    89,135    35,654
                 The Paradiso                                                                construction
                 Golden                                                                      Under
    83   Chengdu                       Xindu                100%   111,166   331,161   331,161
                 Paradise                                                                    construction
                 Jinse Yuefu
                 Music Plaza (金                                                             Under
    84   Chengdu                       Chenghua              60%   152,852   759,036   455,422
                 色乐府音乐广                                                                construction
                 场)
                                   East Lake High-
                                   Tech                                                      Pre-
    85    Wuhan      Jincheng                               100%    38,286   202,620   202,620
                                   Development                                               construction
                                   Zone
                                   East Lake High-
                 Jiayuan           Tech                                                      Pre-
    86    Wuhan                                              50%    67,259   324,100   162,050
                 (嘉园)            Development                                               construction
                                   Zone
                                   East Lake High-
                 Luxuriant
                 Scenery           Tech                                                      Under
    87    Wuhan                                              50%    89,665   409,600   204,800
                                   Development                                               construction
                 (城花璟苑)
                                   Zone
                 Vanke Xicheng
                                                                                             Under
    88   Chongqing   I (万科西城一     Jiulongpo            100%    31,769   142,921   142,921
                                                                                             construction
                 期)
                 Vanke Xicheng
                                                                                             Pre-
    89   Chongqing   II (万科西城二    Jiulongpo            100%    28,507   128,286   128,286
                                                                                             construction
                 期)
                                                                                             Pre-
    90   Chongqing   Gailanxi          Jiangbei             100%   129,535   652,785   652,785
                                                                                             construction
                                                                                             Pre-
    91   Chongqing   Ertang Project    Nan’an               49%   241,314   845,611   414,349
                                                                                             construction
                 Jiyu                                                                        Pre-
    92     Xi’an                      Gaoxin               100%    23,831   150,132   150,132
                 International                                                               construction
                                   Chanba
                 Eastern                                                                     Pre-
    93     Xi’an                      Ecological           100%   175,387   686,388   686,388
                 Metropolis                                                                  construction
                                   District
                 Joying Gold,                                                                Pre-
    94     Xi’an                      Lianhu               100%    36,708   146,831   146,831
                 DK1                                                                         construction
                 Vanke Meijing
    95   Zhengzhou                     Gaoxin                51%   190,319   542,359   276,603   Sold
                 DreamTown
                                   Aviation Port                                             Pre-
    96   Zhengzhou   Glamorous City                          51%   182,560   468,407   238,888
                                   Area                                                      construction
                 Meijing
    97   Zhengzhou   Longmen           Guancheng             51%    79,457   351,529   179,280   Sold
                 Longtang
                 Vanke Meiming
                 Science and
                 Technology                                                                  Under
    98   Zhengzhou   Industrial Park   Gaoxin                51%   130,818   457,863   233,510
                                                                                             construction
                 (万科美铭科技
                 产业园)
                 No. 5 Park
                                                                                             Under
    99    Guiyang    Front Boutique    Yunyan                70%    10,927    98,132    68,692
                                                                                             construction
                 Apartment
                                                     Page 31
    100      Kunming      Glamorous City     Guandu                        55%          417,919        1,662,861         914,574    Sold
                                                                                                                                Pre-
    101      Kunming      Park Avenue        Guandu                        50%          290,724          580,438         290,219
                                                                                                                                construction
                                                                                                                                Pre-
    102       Urumqi      Central Park       Shuimogou                    100%            80,698         201,745         201,745
                                                                                                                                construction
                      Rancho Santa
    103       Urumqi                         Shayibake                     60%          204,628          204,628         122,777    Sold
                      Fe
                      King                                                                                                      Under
    104       Urumqi                         Xinshi                        82%            37,364         130,776         107,236
                      MetropolisII                                                                                              construction
                                   Total                                         11,158,082       31,018,220       21,477,571
      The total land premium and composite redevelopment cost of the above-mentioned projects attributable to
      Vanke’s equity holding was approximately RMB73.3billion.
      From the end of the year under review to the date of publication of this report, the Company had acquired 3 new
      development projects, with a site areaattributable to Vanke’s equity holding of approximately119,000 sq
      m,representing a planned GFA of approximately 389,000 sq m.Details are as follows:
                                                                                                        Unit: sq m
                                                                                                               GFA
                                                                                                               attributable
                                                                                                Planned
                                                           % of              Site area (sq                     to Vanke’s
    No.     City               Project            Location                                          GFA                             Progress
                                                           shareholding      m)                                equity
                                                                                                (sq m)
                                                                                                               holding
                                                                                                               (sq m)
                           Huanyuan                                                                                             Pre-
    1       Xi’an             Road Central       Yanta                100%             65,628           229,698         229,698    construction
                           Project
                           Qiliqu     Land                                                                                      Pre-
    2       Beijing                               Changping             50%             68,944           202,777         101,389
                           Lot                                                                                                  construction
                           Glamrous City      Aviation                                                                          Pre-
    3       Zhengzhou                                                   51%             37,820           113,460           57,864
                           II                 Port Area                                                                         construction
                                   Total                                           172,392           545,935         388,951
      C. Other investments
      1) Investment of securities
      Nil
      2) Equity interests held in other listed companies
                                                                                                                        Unit: RMB
                                                                                                                   Changes in equity
                                                                            Booked value as       Gains/(losses)
                                           Initial                                                                  attributable to
          Stock        Stock                              Percentage of     at the end of the      during the
                                        investment                                                                  equity holders
          code      abbreviation                          shareholdings        year under          year under
                                          amount                                                                    during the year
                                                                                 review              review
                                                                                                                     under review
        600751      Tianjin
                    Marine
                                             143,600.00           0.02%         1,302,000.00                   -           868,800.00
                    Shipping
                    Co., Ltd.
        3698.HK     Huishang
                                      2,499,147,576.48            8.00%     2,460,263,867.93                   -      (38,883,708.55)
                    Bank
        Total       -                 2,499,291,176.48                  -   2,461,565,867.93                   -      (38,014,908.55)
      3) Shareholding in non-listed financial corporations and companies planning for listing
      Nil
      4) Investment in derivatives
    Remarks on risk analysis and management of                      In order to limit the risk associated with the fluctuations ofinterest
    derivativepositions during the year under review (including but rate, the Company entered into an interest rate swap (―IRS‖)
                                                                  Page 32
    notlimited to market risk, liquidity risk, credit risk,             agreement to hedge floating rate foreign currency loan. The Company
    operationalrisk and legal risk, etc.)                               would charge the counterparty an interestaccording to a floating rate,
                                                                    in order to pay the floating-rateinterest to the original lender, while
                                                                    paying a fixed rate to thecounterparty. In terms of the termand amount
                                                                    of theforeign currency loan,IRS limitsthe risk of fluctuations of
                                                                    interest rate through fixedforward rate.
    Change in market price or fair value of the derivativesinvested     The effect of the change in the IRS value on the Company’sprofit and
    during the year under review, as well as themethod, related         lossduring the year under review amounted toRMB(572,000). The
    assumptions and parameters used toanalyse the fair value of         value of the IRS was determinedbased on the fair value assessed on 31
    derivatives should be disclosed                                     December 2013.
    Remarks on whether there has been a material change in              Niltheaccounting policy and accounting measurement principlesforthe Company’s derivatives during the year under review ascompared with those of the previous financial year
                                                                    The Company’s independent directors are of the view thatfinancial
                                                                    instruments such as IRS prevent the possible lossassociated withSpecial opinion on derivative investment and risk control
                                                                    foreign currency loan in the event of significantfluctuations in interestbyindependent directors, sponsors or financial advisors
                                                                    rate. The relevant arrangement of theCompany had been prudent and
                                                                    reasonableDerivative positions as at the end of the year under review
                                                                                                            Unit: RMB’000
                             Contract amount
                                                 Contract amount                             Contract amount asa percentage of
                            as at the beginning                      Profit/loss during the
    Type of contracts                            as at the end of the                        theCompany’s net assets as at the end
                             of the year under                        year under review
                                                year under review                               of the year under review (%)
                                   reviewInterest rate swap (IRS)
                                     2,553,798.7             1,828,155.5                (572.0)                                            1.73agreement
           Total                     2,553,798.7             1,828,155.5                (572.0)                                            1.736. Project development plan for the current yearAs at the end of 2013, the Company had 398 development projects; the total GFA of projects underdevelopmentattributable to Vanke’s equity holding amounted to approximately 26,840,000 sq m, and thetotal GFA of projectsunder planning attributable to Vanke’s equity holding amounted toapproximately 44,950,000 sq m. In addition, theCompany was also involved in 7 city redevelopment projects. At present, demolition is in progress and therelevant formalities are being processed. According to the current planning, the site area attributable to Vanke’sequity holding of the relevant projects was approximately 530,000 sq m,representing a GFA attributable toVanke’s equity holding of approximately2,800,000 sq m.In view of the Company’s existing development projects,the floor area of new starts for the current year isexpected to amount to 22,380,000 sq m, representing an increase of 5.0% from the actual area achieved in 2013.Since construction of part of the projects acquired in the current year will commence during the year, it isexpected that the actual construction area in 2014 will be larger than the above-mentioned plan. The area to becompleted in 2014is expected to amount to14,800,000 sq m, up by 13.6% from the actual completed areain 2013.The Group’s planned projects in 2014 are as follows:
                                                                                                                              Unit: sq m
                                                                                             Planned
                                                                                             area of          Planned
                                                                                                                                Land bank
                                                  Equity                     Planned         newly            completed
    Project                         Location                     Site area                                                         at the end
                                                  interest                   GFA             commenced        area in
                                                                                                                                of 2013
                                                                                             construction     2014
                                                                                             in 2014Guangshen Region
    Vanke Centre, Shenzhen          Yantian             100%          61,730          80,201                 -               -                  -
    Vega Villa, Shenzhen            Yantian             100%         253,990          30,028                 -               -                  -
    Shenzhen One City               Yantian              50%         137,250        354,695                  -        139,625                   -
    Antuoshan Project,               Nanshan
                                                     100%          48,804        219,967                  -               -          219,967ShenzhenLiuxiandong (留仙洞),
                                   Nanshan           100%         394,044      1,335,510          1,335,510               -        1,335,510Shenzhen
                                                                   Page 33Respecte Chateau,
                                        100%    65,364    165,648          -         -         -
    Shenzhen                     Baoan
    Ravine Village, Shenzhen     Baoan      60%    158,639     47,270          -         -    47,270
    Philippe Castle, Shenzhen    Baoan      100%    77,045    264,075          -   179,791         -
                            PingshanGolden Paradise,
                              New       100%   104,801    323,624          -   192,169         -Shenzhen
                             District
    The Village, Shenzhen       Longgang    100%   421,916    595,982          -    81,245         -
    Tianyu(天誉), Shenzhen      Longgang    100%    62,577    355,364          -    17,059         -
    Qianlin Shanju, Shenzhen    Longgang    100%   198,597    380,547          -         -         -
    Home, Shenzhen              Longgang    100%    31,337    155,951          -         -         -
    Home III, Shenzhen          Longgang    50%     43,713    178,241          -    86,300         -Shuijing Project, Buji,
                                        60%    164,982    456,405    212,246    20,117   325,706
    Shenzhen                    Longgang
    Park Avenue, Shenzhen       Longgang    65%     75,326    345,026    114,080    87,940   114,080Bayifu (八意府),
                            Longgang    100%    28,894    115,040          -    67,461         -Shenzhen
    Langqi Project, Shenzhen    Longgang    100%    41,487     22,380          -         -    22,380
    Dajia Island, Shenzhen       Huizhou    100%   364,450     93,340          -         -    93,340
    Lunas Del Mar (双月湾),      Huidong
                                        67%    704,223   1,068,191   361,078    87,991   825,508Huizhou
    Jinyu Huating, Huizhou      Huicheng    100%   151,298    327,550          -    33,507         -
    Watercity (双城水岸),        Tangxia
                              Town      100%   596,786    414,759     88,740    49,939   104,048Dongguan
    Spring Dew Mansion,          Tangxia
                                        51%    128,144    256,287          -   116,634         -
    Dongguan                      Town
                             Tangxia
    Golden City, Dongguan                   100%    32,002     96,006          -    35,438         -
                              Town
    Wonderland (四季花城),       Tangxia
                              Town      100%    51,263     92,273          -    20,386         -Dongguan
    Jinyu Songhu (金域松        Songshan
                              Lake      51%    135,049    381,000          -   170,219         -湖), Dongguan
                            Songshan
    Hongxinuoya, Dongguan                   100%   349,951    267,450          -         -         -
                              Lake
    Songhu Centre (松湖中       Songshan
                              Lake      34%     95,506     73,872          -    25,201         -心), Dongguan
    Songhu Centre II,           Songshan
                                        25%     30,084     30,084          -         -         -
    Dongguan                      LakeVanke Building,
                                        100%     4,771     42,937          -    42,937         -
    Dongguan                    NanchangKing Metropolis,
                                        51%    189,934    493,827          -   113,668         -
    Dongguan                    NanchengFeilishan (翡丽山),
                                        50%    249,534    374,302          -    35,205    60,152
    Dongguan                    Nancheng
    Xiangshu Lishe(香树丽       Nanchang
                                        51%     43,851    109,626          -    42,613         -舍), Dongguan
    Vanke Centre, Dongguan      Guancheng   55%     53,887    215,547          -         -         -
    Jinyu Huating, Dongguan     Guancheng   55%      9,185     29,393          -         -         -
                             Humen
    Zitai, Dongguan                         100%    60,570    151,426          -         -         -
                              Town
    Gold Milestone,              Humen
                                        100%    17,374     69,495          -         -         -
    Dongguan                      Town
    Dream Town, Humen,           Humen
                                        80%    349,805    784,136    153,585         -   784,136
    Dongguan                      Town
    Chang’ an Vanke Centre,    Chang’an
                                        100%    75,653    249,658          -   103,711         -
    Dongguan                      Town
    Jiyu International,          Houjie
                                        100%    88,788    257,486          -   171,149         -
    Dongguan                      Town
                             Houjie
    Houjie Plaza, Dongguan                  67%     32,002    113,856          -         -         -
                              Town
    Dream Town, Changping,      Changping
                                        100%   635,971    442,460          -         -         -
    Dongguan                      Town
                                               Page 34
    Vanke Luhu, (万科麓湖)    Dalingshan
                                       100%    146,674     117,341          -         -           -
    Dongguan                    Town
    Songhu Chuanqi (松湖传      Liaobu
                                       100%     68,431     150,548          -         -           -
    奇), Dongguan               Town
    The Paradiso, Guangzhou     Baiyun     50%     144,657     433,584          -    26,046           -Fengejing Huayuan (峰境
                            Baiyun     100%     24,052      93,803          -         -           -花园), Guanzghou
    Jinyu Huating,              Haizhu
                                       100%       9,117     85,682          -         -           -Guanzghou
    Jiangyan Road Project,      Haizhu
                                       68%      16,831      52,765          -         -           -Guangzhou
    Le Bonheur, Guangzhou       Liwan      100%     38,111     135,689          -         -           -Land LotAF020122,
                            Liwan      100%      7,141      30,706     30,706         -     30,706Xinlongsha, Guangzhou
    Fuqian Garden,              Nansha
                                       95%     134,760     269,520          -         -           -Guangzhou
    Racho Santa Fe,             Huadu
                                       49%     210,252     126,172          -     6,643           -GuangzhouHuashan Project,
                            Huadu      50%     126,941     279,270    100,000         -    279,270Guangzhou
    Donghui Town,              Luogang
                                       55%     177,588     444,943          -   138,496           -Guangzhou
    Donghui Town               Luogang
                                       33%     109,748     271,463          -    83,620           -(Expanding), GuangzhouGolden Dream (金色梦
                           Luogang     51%     115,671     289,178     86,990         -     86,990想), Guangzhou
    Jinse Yuefu, Guangzhou     Huangpu     100%     24,506      63,591          -         -           -Land Lot AT030548Gaotang New Area of
                            Tianhe     100%     30,995      82,962          -         -           -Tianhe Software Park,GuangzhouHuangge Avenue Project,
                            Nansha     100%    156,555     250,488    100,000         -    250,488GuangzhouXinguang City Garden
    (新光城市花园),             Panyu      100%    364,651     591,662     57,603   114,896     57,603Guangzhou
    Dream Town, Qingyuan      Qingcheng    100%   1,219,450   2,438,901   390,077   209,747   1,748,050
    Vanke Huafu, Qingyuan     Qingcheng    100%     79,336     316,002          -    45,861           -
    The Paradiso, Foshan      Nanhai       55%     221,035     568,957          -   154,205           -
    Jinse Xigu Huayuan (金    Nanhai       49%      66,533      81,080          -     5,627           -色溪谷花园), Foshan
    Land Lot B21, Finance     Nanhai       100%     30,984     130,000          -         -    130,000District C, Foshan
    Land Lot B23-24 Finance   Nanhai       100%    188,996     793,784    125,000         -    793,784District C, Foshan
    Land Lot A32 Finance      Nanhai       100%     25,178     146,000    146,000         -    146,000District C, FoshanRespecte Chateau Plaza
                          Nanhai       50%      47,254     354,404    129,059         -    258,794(金色领域广场), FoshanBinfen Siji (缤纷四季),
                          Shunde       100%    156,840     429,527          -   143,201           -Foshan
    Crystal City, Foshan      Shunde       49%     284,036     710,092    125,890   102,693    125,890
    Qinyuan, Foshan           Shunde       100%     80,571     241,712          -    46,362           -
    Tianaowan Project,        Shunde       50%      30,382      74,359     17,103    17,103     17,103Foshan
    F06 Project, Foshan         Shunde     50%     113,224     452,880    218,045         -    452,880Binfen Xiyuan (缤纷西
                            Shunde     100%     43,748     153,000    104,978         -    104,978园), Foshan
    Vanke Plaza, Foshan       Chancheng    88%     114,429     555,819    374,282   146,210    393,841
    Dream Town, Foshan        Chancheng    100%    337,544     776,350          -    75,582    131,738
    Jinyu International,      Chancheng
                                       51%      89,009     373,820    100,442   126,151    116,519Foshan
                                                Page 35
    Zhubin Garden (珠宾花      Xiangzhou
                                         100%   109,917   146,497         -         -         -园), Zhuhai
    Jinyu Gangwan (金域港      Xiangzhou
                                         50%     78,000   196,358    35,838         -   196,358湾), Zhuhai
    Glamorous City, Zhuhai      Doumen       100%   137,061   274,122    98,483    38,691   102,335
    City Garden, Zhuhai          Jinwan      51%     63,233   189,684         -    81,066         -
    Jinyue Huating (金悦华      Tanzhou
                             Town        100%    32,103   127,789         -    34,413         -庭), Zhongshan
                            EasternSpring Dew Mansion,
                           District of   100%    76,387   175,133         -         -         -Zhongshan
                           Zhongshan
    Golden Home (金色家        Dongfeng
                             Town        100%   255,623   789,453    51,027    61,314   473,575园), Zhongshan
    Le Bonheur, Zhongshan        Huoju       65%    251,900   469,359    49,404    52,746   399,026Qingxi Road Project,
                             Shiqi       75%    143,852   429,779   115,553         -   429,779Zhongshan
    Heart of Lake, Xiamen         Huli       100%    95,098   199,710    33,940    15,504    70,285
    Joying Gold, Xiamen         Xiang’an    100%    54,441   109,000         -         -         -
    King Metropolis, Xiamen      Jimei       100%   102,427   446,842         -   169,325         -
    Vanke Plaza, Xiamen          Jimei       100%   137,934   710,000   258,758         -   487,330
    Dream Town, Haicang,        Haicang
                                         40%    189,752   517,690   105,672   100,099   176,586Xiamen
    Dream Town, Quanzhou        Fengze       60%    136,741   478,591   235,660         -   322,126Jinyu Zhongyang(金域中
                           Shishi City   70%     82,769   211,503   198,716         -   211,503央), Shishi, Quanzhou
    Dream Town, Zhangzhou      Xiangcheng    60%    235,606   805,195   270,321         -   805,195
    Jinyu Rongjun (金域榕         Jinan
                                         100%   166,736   383,296    27,825         -    37,802郡), Fuzhou
    King Metropolis, Fuzhou    Cangshan      100%    16,168    37,614         -         -         -
    Vanke Plaza, Fuzhou         Taijiang     100%    93,360   443,107    81,019    73,857    94,878
    Jinyu Garden (金域花园),    Taijiang
                                         60%     25,397   130,795         -         -         -FuzhouDream Town, Yongtai,
                            Yongtai      51%    392,000   418,919   223,189    27,311   390,071Fuzhou
                            Minhou
    The Paradiso, Fuzhou                     51%    213,602   687,507   588,461         -   588,461
                            County
    Dream Town, Putian          Licheng      80%    250,708   530,972    61,964   177,221    61,964
    King Metropolis,             Yuhua
                                         60%    238,066   512,778         -   172,334         -Changsha
    Project Gaozheng,            Yuhua
                                         60%     40,360   170,945    40,673         -   170,945Changsha
    Chengji Xinyuan Project,     Yuhua
                                         40%    351,380   960,664   128,930    55,891   840,554Changsha
    Expanded Land Lot 205,       Yuhua
    Jingtou Yintai (京投银泰                 40%    108,857   326,572    23,238         -   326,572205 扩容地块), Changsha
    The Paradiso, Changsha      Furong       100%   120,208   358,888    76,204         -   255,932
    City Garden, Changsha        Yuelu       100%    40,461   138,032         -         -         -
    Golden Paradise,             Yuelu
                                         78%     43,737   129,437    47,968    43,121    50,004Changsha
    Jinyu Bingjiang,             Yuelu
                                         58%     58,287   208,359   174,061         -   208,359Changsha
    Heron Hill, Changsha         Yuelu       100%   100,351   298,502    84,149    33,098    84,149
    Jiyu International,          Yuelu
                                         51%    159,393   585,845   195,133         -   585,845Changsha
    Meixihu (梅溪湖),            Yuelu
                                         100%   129,323   311,937   135,246         -   311,937Changsha
    Dream Town, Changsha         Kaifu       70%    206,251   481,034    39,447   149,082    39,447
    Zitai, Changsha             Tianxin      70%    116,486   270,963    71,507    38,547   236,177
    Vanke Building, Nanning    Liangqing     100%    25,545   117,670   117,670         -   117,670
                                                Page 36
    Forest Holiday Park,          Tiandu
                                         65%      942,745      470,814      89,476       1,173      153,217
    Sanya                         Town
    Gaozhiyuan Project,           Tiandu
                                         65%      387,807      349,026            -           -     279,841
    Sanya                         TownLakeside Holiday Park,
                              Hedong     80%      338,410      423,315            -     60,204      233,894Sanya
    Guangshen Region subtotal                       18,604,289   39,250,665   8,030,946   4,747,745   17,798,548Shanghai Region
                            Pudong
    Wujiefang, Shanghai         New          100%     121,463      126,887            -     49,804             -
                            District
    Haishang Chuanqi (海上      Pudong
                            New          60%      140,981      310,159      35,340            -     137,149传奇), Shanghai
                            District
                            Pudong
    Golden City, Shanghai       New          60%      264,646      549,046            -           -     183,916
                            District
                            PudongFeicui Bingjiang Project,
                            New          75%       58,550      175,990      84,465            -     123,679Shanghai
                            District
                            PudongBingjiang Project,
                            New          100%      31,617       79,042            -           -      79,042Shanghai
                            District
                            PudongZhangjiang East Land
                            New          45%       79,548      216,569      52,512            -     216,569Lot, Shanghai
                            District
                            PudongZhangjiang West Land
                            New          45%       24,756       74,269      70,250            -      74,269Lot, Shanghai
                            District
    53# Qibao, Shanghai         Minhang      100%      48,932      126,800     126,800            -     126,800New City Garden,
                            Minhang      51%      295,069      401,070      51,797      62,997      103,213ShanghaiSouthern portion of LandLot No. 03,Shanghai
    Hongqiao Business           Minhang      50%       32,177      110,462            -           -            -District Core DistrictPhase I
    Firenze, Shanghai           Minhang      49%      304,830      199,071            -     20,254             -Project No. 11, Hongqiao,
                            Minhang      61%      112,864      177,885      46,171      62,841       46,171Shanghai
    Dream Town, Shanghai        Minhang      70%      210,615      501,833      48,751     100,173       48,751Nanzhan Business District
                            Xuhui        51%      107,486      493,447      65,122            -     387,459Land Lot, Shanghai
    Shangyuan, Shanghai         Qingpu       49%      116,524      142,858            -           -            -
    Jinse Huating, Shanghai     Songjiang    33%       67,932      108,137            -           -            -14# Songjiang Business
                            Songjiang    60%       57,734      143,220            -     61,053       39,305District, ShanghaiRespecte
                            Jiading      50%       90,013      180,026            -    107,409             -Chateau,Shanghai
    The Paradiso, Nantong       Gangzha      55%       99,910      218,650            -     99,694             -Rengang Road Land Lot,
                            Chongchuan   100%      53,277      141,700      46,503            -      46,503NantongAnpin Street Project,
                            Baixia       100%      27,325       20,340       3,000            -      20,340Nanjing
    The Paradiso, Nanjing       Jiangning    100%     272,298      545,280      10,388     110,765       41,661
    Longxi Project, Nanjing     Jiangning    100%      36,043      107,606     107,606            -     107,606Respecte Chateau,
                            Qixia        100%      91,751      201,828            -    138,128             -Nanjing
    Golden Hill,Nanjing         Pukou        100%      62,291       98,694            -     98,694             -
    Jiuduhui, Nanjing           Yuhuatai     80%      126,058      314,741     180,077            -     256,962Glamorous City,
                            Runzhou      100%     795,100      942,820     105,864      53,097      281,324ZhenjiangBlue Mountain Garden,
                            Runzhou      60%      285,683      416,285      67,594      26,440      301,089Zhenjiang
                                                   Page 37
                           Industrial
    Nimble Bay, Suzhou                        70%     384,042     835,281          -    98,457         -
                           District
                           Industrial
    Golden Paradise, Suzhou                   92%      47,177     117,936          -         -         -
                           District
    Nimble East District,      Industrial
                                          50%     104,486     179,075          -         -         -
    Suzhou                     District
                           New
    New Metropolis, Suzhou                    55%      89,098      83,220     27,156         -    27,156
                           District
    Golden Milestone,Suzhou    Jinchang       49%      99,093     247,732          -    68,075         -
    Dream Town, Suzhou         Wuzhong        55%     144,535     361,338     91,265   145,457   137,965
    Jinyu Pingjiang, Suzhou    Gusu           46%      80,948     189,677     68,266    46,439   114,138
    VC Small Town, Suzhou      Xiangcheng     51%     138,601     415,804    108,454         -   354,018
                           Bacheng
    Golf Project, Kunshan                     100%    433,916     240,701          -         -   162,018
                           Town
                           HuaqiaoGlamorous Garden,
                           Development    92%     309,177     773,042     85,698         -   411,140
    Kunshan                    District
    Glamorous City, Wuxi       Binhu          60%     962,116    1,346,963    78,837   122,945   146,752
    The Paradiso, Wuxi         Binhu          100%    154,468     386,170     74,784    39,479   169,688
    Xincheng Road, Wuxi        Binhu          100%    154,119     385,299    115,891    72,436   210,535
                           New
    Golden Paradise,Wuxi                      100%    224,118     620,713     92,341    46,121   162,336
                           District
    Dream Town, Changzhou      Wujin          100%     93,994     234,983          -         -   234,983
    Dream Town, Yangzhou       Hanjiang       65%     297,139     313,970     81,950   102,330    97,518King Metropolis,
                           Hanjiang       65%      59,835     129,512          -    40,527    19,484Yangzhou
    Dream Town, Xuzhou         Jiuli          100%    396,349     716,021    220,872   148,368   395,938Huaihai West Road
                           Quanshan       85%     226,776     810,587    286,605         -   810,587Project, XuzhouLiangzhu Cultural
                           Yuhang         100%   3,108,146   2,361,628         -   333,814   882,839Village, HangzhouBeichenzhiguang,
                           Yuhang         50%     115,683     293,409          -         -         -HangzhouLiangzhu New Town,
                           Yuhang         33%      56,286     140,715     69,400         -   140,715Hangzhou
    Xilu, Hangzhou             Xihu           51%      80,140     151,996          -         -         -Land Lot No. 59,
                           Xihu           100%     30,403      60,806          -         -    60,806Jiangcun, Hangzhou
    Caozhuang, Hangzhou        Jianggan       100%     45,709      89,644          -    55,350         -
    Park Avenue, Hangzhou      Jianggan       50%      68,564     150,841          -         -         -
    Zitai, Hangzhou            Jianggan       100%     46,069     110,566          -   108,664         -Qinjiang New Town,
                           Jianggan       100%     21,915      76,703     75,528         -    76,703HangzhouVanke Dajia Qiantang
                           Jianggan       50%      51,945     135,057          -         -         -Mansion, Hangzhou
    Puyuewan, Hangzhou         Binjiang       60%      66,521     166,204          -         -         -Xiaoshan Project,
                           Xiaoshan       50%      67,425     188,790     94,395         -   188,790Hangzhou
    Gongwang, Hangzhou         Fuyang         100%    517,900     208,981          -    14,516   111,976
    Junwang A+D, Hangzhou      Fuyang         20%     129,874     164,845     32,969         -   164,845
    Junwang B+C, Hangzhou      Fuyang         20%     138,233     152,231          -         -   152,231
                           Xiuzhou
    Golden Paradise, Jiaxing   New            100%     85,286     137,495          -         -         -
                           District
                           Xiuzhou
    Golden Dream, Jiaxing      New            100%     80,987     144,699          -    69,761    74,938
                           District
    Haishang Chuanqi (海上     Economic.
                           Development.   100%     31,945      66,904          -         -         -
    传奇), Jiaxing             Zone
    Yunluwan, Ningbo           Jiangbei       100%    314,208     394,764     49,030   106,003   154,789
    Golden City, Ningbo        Yinzhou        100%     95,242     171,425          -         -         -
                                                   Page 38Jinyu International,
                           Yinzhou     55%       41,080       73,940            -     73,940             -NingboLegend On Midtown,
                           Yinzhou     55%       43,752      100,630     100,630            -     100,630Ningbo
    Dream Town, Ningbo         Zhenhai     49%      226,777      491,525            -     79,922      136,892Dream Town East,
                           Zhenhai     49%       70,795      127,431     127,431            -     127,431NingboJiangdong Mansion,
                           Jiangdong   100%      66,833      133,666            -           -            -Ningbo
    Park Avenue, Ningbo        Gaoxin      82%       48,004      105,609            -           -            -Longwan Golden,
                           Longwan     60%      125,219      179,733            -           -            -WenzhouLegend On Midtown,
                           Longwan     51%       45,864      128,396            -           -            -WenzhouJinyuzhongyang (金域中
                           Ouhai       60%       53,765      144,939            -    142,911             -央), Wenzhou
    Golden Mingjun, Hefei      Shushan     50%      107,326      401,670            -           -            -
    King Metropolis, Hefei     Shushan     50%      115,628      412,101      84,087      62,066       84,087
    Dream Town, Hefei          Binhu       55%      107,220      375,272      86,605     108,110       86,605Blue Mountain Garden,
                           Binhu       55%      165,584      463,635     114,295     122,624      237,169Hefei
    Forest Park, Hefei         Luyang      100%     516,459     1,394,439    275,133            -   1,142,546
    Dream Town, Wuhu           Jiujiang    100%     274,404      493,926      48,710     106,981      215,714Haishang Chuanqi (海上
                           Yijiang     49%      121,895      367,711            -           -     367,711传奇), Wuhu
    Qingshan Lake Mingdi       Qingshan
                                       50%       97,061      133,693            -           -            -
    (青山湖名邸), Nanchang     Lake
    Jinse Minjun (金色名郡),   Qingshan
                                       50%       16,888       50,381            -           -            -
    Nanchang                   Lake
    Dew Garden, Nanchang       Qingyunpu   50%       97,109      144,011            -           -            -
    The Paradiso, Nanchang     Xihu        50%       21,818       75,338            -           -            -
    Dream Town, Nanchang       Gaoxin      33%      299,708      417,362     144,656     133,695      152,514Haishang Chuanqi (海上
                           Gaoxin      50%      163,213      355,802     250,084      26,510      250,084传奇), NanchangCuidieyuan (粹叠园),
                           Honggutan   50%       80,120      184,276     184,276            -     184,276NanchangShanghai Region
                                              16,474,463   27,635,928   4,171,588   3,466,850   11,170,355SubtotalBeijing Region
    Ruyuan C1, Beijing         Haidian     50%       85,099      187,218     120,036      27,520      120,036
    Ruyuan C3, Beijing         Haidian     50%       33,745       79,306            -     31,820             -No. 5 Park Front
    Boutique Apartment,        Chaoyang    60%       37,917       97,044            -           -            -Beijing
    Beijing Hills              Chaoyang    100%      55,885      155,330            -           -            -The Metropolis (大都会),
                           Chaoyang    100%       5,329       36,465            -           -            -BeijingNo. 77 Beihe Yanjia (北
                           Dongcheng   100%       4,103       14,372            -           -            -河沿甲), BeijingHongshi Jiayuan (红狮家
                           Fengtai     100%      59,800      180,152            -           -            -园), BeijingVanke Lan (万科蓝),
                           Fengtai     100%      14,449       36,084            -     36,084             -Beijing
    Xihuafu, Beijing           Fengtai     50%      233,209      629,170     255,028      51,533      255,028Land Lots 010, 014, 015,
    017, 019 Park Avenue,      Tongzhou    50%       88,767      210,738      87,662            -     210,738BeijingLand Lot 007 Park
                           Tongzhou    35%       34,657      103,971            -           -     103,971Avenue, BeijingLand Lots 005, 008, 009
                           Tongzhou    50%       61,717      123,434      44,350            -     123,434Park Avenue, Beijing
                                                 Page 39
    Jinyu Vanke City, Beijing    Changping     49%     178,908     485,234     10,800    68,092    10,800
    King Metropolis, Beijing     Changping     50%     198,007     559,214    175,874    87,229   182,688Changyang Bandao,
                             Fangshan      50%     437,179     853,165          -    47,952         -Beijing
    Yunwan Jiayuan, Beijing      Fangshan      50%      61,567     157,984          -   127,721     6,354Xingfuhui (幸福汇),
                             Fangshan      68%      71,912     137,777      2,295    27,536     2,295Beijing
    New Milestone, Beijing       Fangshan      20%      77,834     142,612          -         -         -
    Golden Paradise, Beijing     Fangshan      40%      65,967     156,993          -    83,158     6,143Jinyu Park (金域公园),
                             Fangshan      51%      27,528      55,056          -    55,056         -BeijingChangyang Tiandi (长阳
                             Fangshan      38%     112,673     208,351    193,590         -   208,351天地), BeijingChangyang Bandao
    Central Town (长阳半岛       Fangshan      35%      63,950     156,384     42,452         -   156,384中央城)Spring Dew Mansion,
                             Daxing        50%      67,651     173,215          -    44,660         -BeijingEastern
                             Daxing        50%      57,826     144,564          -         -         -Metropolis,BeijingVanke Cheng (万科橙) ,
                             Daxing        50%      43,446     155,207     53,795         -    53,795BeijingShoukai Vanke Centre
                             Daxing        50%      41,092     126,996    126,996         -   126,996(首开万科中心), BeijingTianzhu Joying City (天
                             Shunyi        56%      17,985      31,051     31,051         -    31,051竺悦城), BeijingBaoshui District Project,
                             Shunyi        97%      25,112      44,716     44,716         -    44,716Tianzhu , Beijing
    Gaoliying Project, Beijing   Shunyi        35%     187,830     170,568     47,113         -   170,568
    Huanqingcheng,               Xianghe
                                           50%     130,045     221,077    100,000         -   221,077
    Langfang                     County
    Stratford, Tangshan          Lunan         100%    153,527     104,445          -     6,960         -Windsor Castle, Tangshan
                             Lunan         100%     47,007      47,635          -    24,095    23,540(唐山温莎堡)King
                             Lubei         60%      78,977     166,159          -    41,922    22,635Metropolis, .Tangshan
    The Paradiso,Tangshan        Lubei         40%      53,440     154,503     89,135    65,368    89,135
                             Fenghuang
    New Milestone, Tianjin                     48%      88,848     264,659    253,987         -   264,659
                             New CityHoliday Views (假日风
                             Haigang       48%      75,526     188,816          -    83,063         -景) QinghuangdaoBeidaihe Town (北戴河
                             Beidaihe      50%     238,561     278,286          -         -   229,883小镇) Qinghuangdao
    Waterfront, Tianjin          Dongli        100%   2,708,886   1,763,059   199,200    97,625   735,041
    A Glamorous City, Tianjin    Dongli        100%    176,773     258,579          -     5,447         -
    New Milestone, Tianjin       Dongli        51%     136,524     206,863          -         -         -Jinse Yazhu (金色雅筑),
                             Dongli        49%      90,792     173,937          -         -         -Tianjin
    King Metropolis, Tianjin     Dongli        51%     221,217     360,069     73,800    35,683   295,967Holiday Dew Garden,
                             Xiqing        100%    229,201     343,101          -    22,522         -TianjinJin’ao International,
                             Xiqing        100%     58,577     160,080          -         -         -Tianjin
    Wonderland,Tianjin           Xiqing        51%     409,701     502,892    112,575         -   432,921
                             Development
    Binhai Modern, Tianjin       District
                                           100%      6,538      43,473          -         -         -
                             Development
    Park Residence, Tianjin      District
                                           60%      32,270      48,709          -    23,285         -
                             Binhai New
    Harbor (海港城), Tianjin                   51%     149,483     372,910          -   104,438    39,962
                             District
                             Binhai New
    Jinlu (锦庐), Tianjin                      95%      90,604     127,095          -    59,473         -
                             District
                                                    Page 40
                             Binhai New
    East Coast, Tianjin                        51%    255,311    377,516          -    23,157   354,359
                             District
                             Binhai New
    Jinyu Internationl,Tianjin                 51%    108,389    189,160     39,634    48,523   100,885
                             DistrictShilinyuan (仕林苑),
                             Jinnan        40%     63,582    114,474          -    86,701         -TianjinPark Residence, Meijiang
                             Hexi          80%     62,205    124,410    121,935         -   124,410(梅江柏翠园), Tianjin
    Dream Town, Shenyang         Heping        49%    361,320    868,373          -    85,015         -
    Rotterdam , Shenyang         Heping        100%   120,333    360,999     54,827    59,975   163,365
                             Hunnan
    The Paradiso, Shenyang       New           100%   226,356    601,439     34,716    64,838    34,716
                             District
                             Hunnan
    Shenyang Tomorrow City       New           70%    199,319    597,957     67,969   167,348   252,463
                             DistrictPark Residence,
                             Shenhe        55%     83,229    290,681     27,250    17,805    91,829Shenyang
    Chunheli, Shenyang           Shenhe        82%     81,378    431,232     42,158   107,176   208,142Whistler (惠斯勒小镇),
                             Dongling      70%    285,599    286,141          -         -   225,438ShenyangBlue Mountain ,
                             Dadong        60%     78,367    235,102          -         -         -ShenyangSpring Dew Mansion
    (Long Mansion),              Tiexi         70%     66,547    178,598          -    93,178         -ShenyangSpring Dew Mansion
                             Tiexi         100%    57,030    150,315     40,917    36,086    95,049(Run Mansion), ShenyangLakeside Grand View (香
                             Yuhong        49%    190,156    342,360     55,715    43,653   116,565湖胜景) North, ShenyangLakeside Grand View (香
                             Yuhong        51%    135,464    304,520          -         -   295,704湖胜景) South, Shenyang
    Park Avenue, Shenyang        Yuhong        100%   169,774    407,374     66,249   101,280   272,732
    Holiday Views, Shenyang      Huanggu       100%   200,000    475,936    101,405         -   475,936
                             Development
    The Paradiso, Fushun         District
                                           100%   300,150   1,034,003    29,660    37,381   883,582Jinyu International(金域
                             Shuncheng     100%    72,560    316,582     47,986         -   215,153国际), FushunYinkou Habor(营口海港
                             Bayujuan      100%   138,990    399,449     63,616         -   258,097城), Shenyang
    Whistler Town, Anshan        Tiedong       100%   422,171    713,400     13,000         -   386,367
    Dream Town, Anshan           Gaoxin        100%   167,664    375,002     22,601         -    58,189
    Jinyu Internationl, Anshan   Tiexi         51%    225,715    677,000          -         -   542,724
    Ravine Village, Dalian       Ganjingzi     100%   363,716    380,922          -         -         -
    A Glamorous City, Dalian     Ganjingzi     100%   218,498    443,186          -         -         -Spring Dew Mansion,,
                             Ganjingzi     100%   118,506    229,822          -    92,761    11,515Dalian
    Xishan Project, Dalian       Ganjingzi     55%     90,404     91,308          -    41,364         -
    Blue Mountain, Dalian        Ganjingzi     100%   125,100    214,470     24,875         -    80,375Dalianmen Project,
                             Ganjingzi     100%    19,131     37,627     34,077         -    37,627Dalian
                             Puwan New
    Habor, Dalian                              55%    581,172    968,300      5,273    46,299   727,172
                             District
                             High-TechCherry Blossom Garden,
                             Industrial    71%    192,248    363,349     53,195    76,911   257,904Dalian
                             Zone
    Dream Town, Dalian           Jinzhou       100%   284,806    620,607    138,358         -   475,217Chenghua East Project,
                             Shahekou      100%    35,757     64,260     64,260         -    64,260DalianBlue Mountain,
                             Erdao         100%   228,670    501,678          -    61,686    85,296Changchun
    Whistler (惠斯勒),           Jingyue       50%    399,715    484,714     91,912    45,619   225,345
                                                  Page 41Changchun
    Dream Town, Changchun       Jingyue       51%      350,965     1,068,964           -     17,192      788,165Park Residence,
                            Chaoyang      100%     267,981      503,349            -     42,707      223,785ChangchunScupture Park Project,
                            Nanguan       50%      121,109      343,058      64,232            -     297,767Changchun
    Dream Town, Jinlin          Gaoxin        65%      728,139     2,001,721           -    109,066     1,216,130Songhua Lake Project,
                            Fengman       100%     531,598      681,890     121,379      83,379      681,890JinlinA Glamorous City,
                            Chengyang     80%      200,289      341,136            -           -            -Qingdao
    City Garden, Qingdao        Chengyang     80%      130,873      231,482            -           -            -Rose Lane (玫瑰里),
                            Chengyang     51%      340,069      540,307      21,755      18,083      369,097QingdaoChunyang Garden,
    Qingdao                     Chengyang     51%       86,493      183,142     114,880            -     114,880(青岛春阳花园)Taohuayuan(桃花源),
                            Chengyang     80%      129,032      230,194     230,194            -     230,194Qingdao
    Aureate City,Qingdao        Shibei        100%      61,873      173,945            -           -            -
    Dream Town, Qingdao         Shibei        55%      154,607      392,904            -     37,869      125,943
    Vanke Centre, Fuzhou        Shibei
                                          100%      38,775      123,703            -     30,003             -Road, Qingdao
    Vanke Centre,               Shibei
                                          70%       18,646       70,486            -           -            -ShandongRoad, Qingdao
    Blue Mountain,Qingdao       Shibei        100%      68,153      208,462            -     40,824             -
    Zitai, Qingdao              Shibei        100%      68,562      204,603     124,598            -     204,603Ecological
                            Licang        100%     141,346      261,571            -           -            -Town, Qingdao
    Qingdao Town                Huangdao      34%      933,293      702,304     149,084     125,031      517,800
    Qingdao Dongjun             Jimo          55%      196,446      430,183      78,603     115,627      250,196Pingdu Dream Town,
                            Pingdu        51%       59,308      197,931      96,286      75,076       96,286QingdaoPingdu New City,
                            Pingdu        51%       75,701       97,496      97,496            -      97,496Qingdao
    Haiyuntai, Yantai           Zhifu         100%     311,614      444,000            -           -     255,301
    Holiday Views, Yantai       Fushan        70%      190,281      362,813            -     56,888      145,452Holiday Dew Garden,
                            Fushan        70%       65,733      152,466            -    152,466             -YantaiYulongshan (御龙山),
                            Zhifu         51%      341,943      615,200      39,127      13,120      508,922Yantai
                            Development
    Dream Town,Yantai           District
                                          51%      241,167      627,813      77,806            -     540,100Jiyu International(金域国
                            Gaoxin        63%      127,759      408,346      72,625     116,530      188,736际), Jinan
    Dream Town, Jinan           Lixia         50%      191,418      478,545     340,155            -     340,155
    New Milestone,Jinan         Licheng       100%     113,132      316,728     219,146            -     316,728
    Zitai, Taiyuan              Yingze        51%       95,687      334,330            -    115,344             -Jinyu Internationl,
                            Wanbolin      100%      49,407      169,679            -           -            -Taiyuan
    Blue Mountain, Taiyuan      Wanbolin      51%      198,392      693,540      87,287            -     552,019Transportation Company
                            Wanbolin      100%      37,060      177,415     177,415            -     177,415Land Lot, TaiyuanSpring Dew Mansion,
                            Yuci          51%      218,143      476,596     155,873      81,383      260,849Jinzhong
    Beijing Region subtotal                          21,241,967   39,897,286   5,573,984   3,825,586   19,788,493Chengdu RegionA Glamorous City,
                            Chenghua      60%      308,501      761,258            -     48,442             -Chengdu
                                                    Page 42Vanke Diamond Plaza,
                           Chenghua        85%     15,404    92,422         -    92,422         -ChengduVanke
    Huamao                     Chenghua        51%     29,720   214,137         -         -         -Plaza, ChengduJinse Yuefu Music Plaza
    (金色乐府音乐广场),        Chenghua        60%    152,852   759,036   130,082         -   454,948ChengduJinyu Xiling (金域西岭),
                           Jinniu          60%     79,331   361,100         -         -         -Chengdu
    Golden Domain, Chengdu     Qingyang        100%    49,628   244,459         -    53,935         -
    Jinrun Huafu, Chengdu      Jingjiang       100%    52,895   267,928         -    31,501         -
    Golden Hairong, Chengdu    Wuhou           49%     54,970   234,125         -    92,964         -Wulong Mountain
                           Xindu           100%   345,168   356,503         -   104,962         -Garden, Chengdu
    Jinyu Tixiang,Chengdu      Xindu           100%   111,166   331,161    58,842         -   184,952Jinyu Mingdi
                           Gaoxin          50%     48,345   145,034         -         -    85,260(金域名邸), ChengduNo. 5 Park Front
    Boutique Apartment,        Gaoxin          50%     87,822   263,464         -         -   232,981Chengdu
    Golden City,Chengdu        Longquanyi      55%     72,102   288,410    85,652         -    85,652
    Aureate City,Chengdu       Longquanyi      55%     47,245   141,642         -         -         -Haiyue Huicheng,
                           Shuangliu       90%    104,307   524,843         -   128,752         -Chengdu
    Jinrun Huafu, Nanchong     Gaoping         60%    182,012   518,004   105,000    41,777   364,267
    King Metropolis, Wuhan     Wuchang         100%    59,790   191,300         -    51,280         -Hanyang International,
                           Hanyang         70%    166,817   568,974   158,590   162,519   195,761Wuhan
    Dream Town, Wuhan          Jianghan        100%    65,901   299,337         -    29,973         -Huanzi Lake Project,
                           Jianghan        100%     7,388    36,683     3,999         -     3,999WuhanHankou Chuanqi (汉口传
                           Jianghan        50%     42,385   228,430         -         -         -奇), Wuhan
                           East Lake
                           High-Tech
    Stratford, Wuhan           Development
                                           100%   230,894   349,607         -         -         -
                           Zone
                           East Lake
    Liantou VankeEcological    High-Tech
                           Development
                                           50%    199,709   299,563         -         -   299,563Town, Wuhan
                           Zone
                           East Lake
    Luxuriant Scenery (城花    High-Tech
                                           50%     89,665   409,600   119,822         -   253,551
    璟苑), Wuhan               Development
                           Zone
                           East Lake
    Jiayuan (嘉园), Wuhan      High-Tech
                           Development
                                           50%     67,259   324,100    67,746         -   324,100
                           Zone
                           East Lake
                           High-Tech
    Jincheng (锦程), Wuhan     Development
                                           100%    38,286   202,620   202,620         -   202,620
                           Zone
                           Economic
                           and
    The Paradiso, Wuhan        Technological   100%   213,440   533,600         -    53,164         -
                           Development
                           Zone
    Golden City, Wuhan         Hongshan        100%   273,850   896,484         -   249,011         -Changzheng Village
                           Hongshan        100%   282,235   871,721   130,108         -   762,757Project, WuhanYoucheng Ecological
                           Yubei           51%    229,581   344,372         -    16,162         -Garden, ChongqingJincheng (锦程),
                           Yuzhong         100%   105,406   533,486         -         -         -Chongqing
                                                  Page 43
                            Northern
    Wonder Town, Chongqing      New          100%    41,448    145,067          -         -           -
                            District
                            NorthernPalace of Pleasure,
                            New          100%   137,996    376,737          -   161,288           -Chongqing
                            District
                            Northern
    Dream Town, Chongqing       New          55%    278,167    647,378     36,241   318,923     67,905
                            District
    Yuewan, Chongqing           Jiangbei     45%    435,499    649,158     82,548    84,398    351,266
    Gailanxi, Chongqing         Jiangbei     100%   129,535    652,785    133,569         -    652,785Ertang Project,
                            Nan’an      49%    241,314    845,611    152,514         -    845,611ChongqingJoying Gold,
                            Shapingbei   80%    175,000    700,000    143,184         -    368,323ChongqingVanke Xijiu (万科西九),
                            Jiulongpo    50%     26,515    145,688     73,571    26,137     76,207ChongqingVanke Xicheng (万科西
                            Jiulongpo    100%    60,276    271,207     77,151         -    128,286城), Chongqing
                            QujiangJinyu Qujiang (金域曲
                            New          55%    152,667    390,176          -    21,532           -
    江), Xi’an                 DistrictLand Lot 7#Dream Town,
                            Chang’an    85%    186,849    619,806    160,830   127,236    175,823Xi’an
    Land Lot 3#Dream Town,      Chang’an
                                         60%    113,231    352,802     93,968    89,674    150,157Xi’an
    Land Lot 8#Dream Town,      Chang’an
                                         100%   172,666    504,464     95,600         -    504,464Xi’an
    King Metropolis, Xi’an     Weiyang      51%    106,667    372,461     69,204   226,203     70,714Daminggong Project,
                            Weiyang      70%     69,052    221,603     52,710         -    155,063Xi’an.
    Joying Gold, Xi’an         Lianhu       80%    193,571    664,643     15,576         -    448,567
    Joying Gold DK1, Xi’an     Lianhu       100%    36,708    146,831     45,000         -    146,831
    Jiyu International,Xi’an   Gaoxin       100%    23,831    150,132          -         -    150,132
                            Chanba
    Eastern Metropolis,Xi’an   Ecological   100%   175,387    686,388    165,544         -    686,388
                            DistrictVanke Meijing Longmen
                            Guancheng    51%     79,457    351,529    184,703         -    217,305Longtang, ZhengzhouMeiming Science andTechnology Industrial
                            Gaoxin       51%    130,818    457,863     58,803         -    457,863Park (美铭科技产业园),ZhengzhouVanke Meijing Dream
                            Gaoxin       51%    190,319    542,359    240,226         -    353,473Town, ZhengzhouVanke Meijing,
                            Aviation
    Glamorous City,                          51%    182,560    468,407    118,721         -    468,407
                            Port AreaZhengzhou
    King Metropolis, Guiyang    Xiaohe       51%    351,800    581,217     58,608    64,777    261,048Metropolis(大都会),
                            Xiaohe       51%    181,235    761,187    145,776    39,046    579,108Guiyang
    Nimble Bay, Guiyang         Yunyan       100%    81,246    200,705     28,544    59,525     85,226
    Joy City(悦城), Guiyang     Yunyan       51%     85,341    262,728     63,585         -    105,841
    Dream Town, Guiyang         Yunyan       30%    348,117    910,910    192,190         -    563,026No. 5 Park Front
    Boutique                    Yunyan       70%     10,927     98,132          -         -           -Apartment,GuiyangDew Garden (润园),
                            Panlong      100%   192,104    247,394     83,257    42,741     85,327Baisha, Kunming
    Yunshangcheng, Kunming      Wuhua        23%     34,293    177,468          -    10,685           -Respecte Chateau (金色
                            Gaoxin       67%    105,484    423,175    133,035    79,194    133,035领域), Kunming
    A Glamorous                 Guandu       55%    417,919   1,662,861   402,064   183,720   1,319,114
                                                Page 44City,Kunming
    Park Avenue,Kunming       Guandu          50%       290,724       580,438       253,971             -      580,438
                          New
    King Metropolis, Urumqi                   82%        77,425       245,780        24,005             -       24,005
                          District
                          Urumqi
    Nanshan Villa, Urumqi                    100%        32,298        14,900         9,883         5,018        9,883
                          CountyJinyu International,
                          Shayibake      100%        24,150        60,376             -             -            -Urumqi
    Jinyu Tixiang, Urumqi     Shayibake      100%        20,078        50,196        50,196             -       50,196
    Rancho Santa Fe,Urumqi    Shayibake       60%       204,628       204,628        56,163        64,448       56,163
    Central Park, Urumqi      Shuimogou      100%         80,698       201,745       40,000             -      201,745
    Chengdu Regionsubtotal                             9,692,074    28,640,338    4,603,401     2,761,409   13,980,136
                     Total                        66,012,793   135,424,217   22,379,919    14,801,590   62,737,532Special Remarks on Risk Factors:The schedule for the commencement and completion of the above-mentioned projects may be adjusted due to thefollowing factors:a) There may be changes in the macro-economic condition and the property market or changes in the sale of anindividual project;b) Project approval requirements may be tightened by new regulations such that the progress of application forpermits will be slowed down, thereby affecting the schedule of project development;c) Progress in demolition and resettlement of related projects may affect the development schedule;d) Significant changes in weather conditions may affect the construction progress of projects, which in turn mayaffect the schedule for completion;e) Impact of other unpredictable significant events on the construction progress of projects.VIII. Work Report of the Board of Directors(1) The Board held a total of four board meetings during 2013A. On 26 February 2013, the Ninth Meeting of the Sixteenth Board was held to consider and approve the
    following resolutions: the resolution regarding the appropriation and write-off of the       provision          fordiminution in asset value for the year 2012; the audited financial report for the year 2012; the special remarks onthe deposit and use of proceeds raised from previous fund-raising exercises during 2012; the internal control self-assessment report for the year 2012; the proposal on profit appropriation and dividend distribution for the year2012; the resolution regarding the reappointment of certified public accountants for the year 2013; the resolutionregarding the Company’s 2012 annual report and its summary; the corporate social responsibility report for theyear 2012; the resolution regarding continued cooperation with CRH; the resolution regarding nomination ofdirector candidates; and the resolution regarding the convention of the 2012 annual general meeting. Theannouncement regarding the relevant resolutions was published in China Securities Journal, Securities Times,Shanghai Securities News, Securities Daily, and IRasia.com, Hong Kong, respectively, on 28 February 2013.B. On 19 April 2013, the Tenth Meeting of the Sixteenth Board was held to consider and approve the followingresolutions: the 2013 first quarterly report and financial statements; resolution regarding the fulfilment of theconditions of the second exercise period for A-Share Stock Option Incentive Scheme; and the election of DirectorWei Bin as member of Audit Committee and Director Chen Ying as member of Investment and Decision-makingCommittee in a by-election. The related announcement was published in China Securities Journal, SecuritiesTimes, Shanghai Securities News, Securities Daily, and IRasia.com, Hong Kong, respectively, on 23 April 2013.C.On 5 August 2013, the Eleventh Meeting of the Sixteenth Board was held to consider and approve the 2013interim report, its summary and its financial report, and the resolution regarding no dividend distribution and notransfer of capital reserve to share capital for the 2013 interim period.The announcement regarding the relevantresolutions was published in China Securities Journal, Securities Times, Shanghai Securities News, SecuritiesDaily, and IRasia.com, Hong Kong, respectively, on 7 August 2013.D. On 28 October 2013, the Twelfth Meeting of the Sixteenth Board was held to consider and approve the 2013third quarterly report and financial statements. The related report was published in China Securities Journal,Securities Times, Shanghai Securities News, Securities Daily, and IRasia.com, Hong Kong, respectively, on 10
                                                     Page 45October 2013.(2) In 2013, the Board conducted 8 votings by electroniccommunication
    A.    On 11 January 2013, the resolution regarding proposal for change of listing location of domestically listed
    foreign shares of the Company and listing & trading on the main board of The Stock Exchange of Hong Kong
    Limited by way of introduction; the resolution regarding submission to the Company’s shareholders’ meeting
    to authorize the Board and its authorized persons to handle all matters relating to the change of listing location
    of domestically listed foreign shares and listing &trading on the main board of The Stock Exchange of Hong
    Kong Limited by way of introduction; the resolution regarding confirmation of the persons authorised by the
    Board; the resolution regarding the Company becoming an overseas listed joint stock limited company; the
    resolution regarding China Vanke Co., Ltd.’s Articles of Association (A+H); the resolution regarding the
    validity period of the relevant resolutions in relation tochange of listing location of domestically listed foreign
    shares of the Company and listing & trading on the main board of The Stock Exchange of Hong Kong
    Limited by way of introduction; and the resolution regarding the convention of the first extraordinary general
    meeting in 2013 weresubmitted to the board for consideration and approval through voting by electronic
    communication.B. On 21 January 2013, the resolution regarding minor adjustment to the Company’s incentive scheme
    wassubmitted to the board for consideration and approval through voting by electronic communication.C. On 7 May 2013, the resolution regarding adjustment to the exercise price of the A-share stock options
    wassubmitted to the board for consideration and approval through voting by electronic communication.D. On 27 June 2013, the resolution regarding guarantee provided by Vanke Property (Hong Kong) Company
    Limited to Vanke Property (Overseas) Limited was submitted to the board for consideration and approval
    through voting by electronic communication.E. On 12 July 2013, the resolution regarding medium-term note program wassubmitted to the board for
    consideration and approval through voting by electronic communication.F. On 28 October 2013, the resolution regarding investment in Huishang Bank Corporation Limited’s initial
    public offering of H shares as a cornerstone investor was submitted to the board for consideration and
    approval through voting by electronic communication.G. On 17 December 2013, the resolution regarding cooperation with CRH to make a joint bid for property
    project wassubmitted to the board for consideration and approval through voting by electronic communication.H. On 25 December 2013, the resolution regarding the appointment of Mr Chen Wei as executive vice president
    was submitted to the board for consideration and approval through voting by electronic communication.Pursuant to relevant requirements, the progress and important facts of the related issues were published in ChinaSecurities Journal, Securities Times, Shanghai Securities News, Securities Daily and IRasia.com, Hong Kong, on19 January 2013, 14 May 2013, 31 October 2013, and 4 January 2014 respectively.(3) The Board’s implementation of the resolutions approved at shareholders’ meetingsA. Implementation of the proposal on change of listing location of the Company’s domestically listed
    foreign shares (“B shares”) for listing on the main board of The Stock Exchange of Hong Kong Limited
    (“SEHK”) by way of introductionThe Company’s 2013 first extraordinary general meeting approved the resolutions regarding the proposal on thechange of listing location of the Company’s B shares for listing and trading on the main board of SEHKby way ofintroduction. Pursuant to the resolutions approved at the shareholder meeting, the Company made applications toChina Securities Regulatory Commission and SEHK, and obtained a confirmation letter regarding the processingof the application for administrative licence issued by China Securities Regulatory Commissionon 7 February. On15 February, the Company received a confirmation letter from the SEHK. The relevant applicationsare still underreview.On 3 March 2014, the Company received the ―Reply regarding approval of China Vanke Co., Ltd’s listingon the main board of The Stock Exchange of Hong Kong Limited‖ (Zhengjian Xu Ke [2014] No. 239)issued byChina Securities Regulatory Commission (―CSRC‖). CSRC approved the Company’s conversion of its B shares to
                                                        Page 46overseas listed foreign shares for listing on the main board of The Stock Exchange of Hong Kong Limited.B. The implementation of the proposal on dividend distribution for the year 2012In accordance with the resolutions passed at the 2012 (25th) annual general meeting, the Board had proceededwith the implementation of the proposal on dividend distribution for 2012. The dividend distribution proposal for2012 is as follows: Based on the total share capital of the Company at the close of market on the record date, forevery 10 existing shares held, a cash dividend of RMB1.8 (including tax).At the time of distribution, the actualcash dividend paid to individual shareholders and securities investment fund investors of A shares and individualshareholders of B shares on the basis of every 10 existing shares held was RMB1.71, after a withholding incometax at a 5% rate was deducted. When a shareholder transfers his/her shares, China Securities Depository andClearing Corporation Limited will, according to the Notice from the Ministry of Finance, the State Administrationof Taxation and China Securities Regulatory Commission Regarding Policies of Implementation of DifferentialIndividual Income Tax on Bonus Shares and Dividends of Listed Companies (Cai Shui [2012] No. 85), withholdthe outstanding amount of tax that has not been withheld and paid in accordance with the actual tax amount to bepaid by the shareholder, which is calculated basing on the holding period of the shares, and such outstandingbalance will be paid by the Company on behalf of the shareholder. An actual amount of RMB1.62 cash dividend,after deducting a withholding income tax at a 10% rate, was paid to non-resident enterprise shareholders of A andB shares (including qualified foreign institutional investors of A shares) on the basis of every 10 existing sharesheld. The record date for A shares was 15 May 2013, and ex-dividend date was 16 May 2013, while the lasttrading day of B shares was 15 May 2013, ex-dividend date was 16 May 2013, and the record date was 20 May2013. The exchange rate for B share’s cash dividend was HK$1 = RMB0.8081, being the median price of theexchange rate of Hong Kong dollars for Renminbi published by the People’s Bank of China on the first workingday (21 March 2013) after the approval of the dividend distribution proposal at the Company’s 2012 annualgeneral meeting.Based on the Company’s total number of shares of 11,007,782,059 on the record date for dividend distribution for2012, the actual amount of cash dividends paid by the Company amounted to RMB1,981,400,770.62.C. Continued cooperation with CRHThe Company’s 2012 (25th) annual general meeting authorised the Board to decide on, within RMB12.7 billion(i.e. not more than 20% of the Company’s audited net assets value as at the end of 2012) the continuouscooperation with China Resources (Holdings) Co., Ltd and its connected companies (collectively ―CRH‖),including entering into a loan agreement with China Resources Bank of Zhuhai Co., Ltd., using the funds underChina Resources SZITIC Trust Co., Ltd. and Harvest Capital Partners Limited, and joint investment with ChinaResources SZITIC Trust Co., Ltd. and Harvest Capital Partners Limited. The validity of the authorization is twoyears from the date of passing of the relevant resolution at the shareholder meeting.During the year under review, no new cooperative projects under the scope of authorisation were implemented.(4) Specialised Committees’ Performance of DutiesThe three specialised committees, namelythe audit committee, the remuneration and nomination committee, aswell as the investment and decision-making committee, had dutifully performed their duties, in accordance withthe ―Code of corporate governance for listed companies‖, ―Articles of Association‖, and ―Rules Governing theProcedures of Board Meetings‖ and the responsibilities and obligations as stipulated in the implementation detailsof the different specialised committees.A. Audit committee’s performance of dutiesDuring the year under review, the audit committee held six audit committee meetings and communicationmeetings. The audit committee considered the following issues: the arrangement of audit duties, the periodicalfinancial reports, proposal on profit appropriation, the appointment of accountants, execution of standardization ofinternal control, guarantees, etc. The audit committee also communicated with the auditors on several occasions.The audit committee actively facilitated the audit process in 2013. Since the end of the year under review, theaudit committee had held onecommittee meeting and communication meeting, supervised the auditors to strictlyfollow the audit schedule, reviewed the financial statements and provided feedback. It also resolved on theappointment of accountants, internal control self-assessment report, and dividend distribution.
                                                     Page 47The audit committee concluded the audit performed by KPMG Huazhen(Special General Partnership) in 2013 asfollows:
    I.   Preparation before auditingi. Determination of audit scheduleThe audit for 2013 took seven months to complete, starting from internal control auditing, which commenced atthe beginning of August 2013. Details of the work schedule are as follows:1) August to September 2013: Internal control audit. KPMG selected certain key subsidiaries and newlyestablished companies according to the Group’s internal control guidelines to conduct internal control audit;2) November to December 2013: Pre-audit. KPMG selected key cities to perform pre-audit according to the levelof importance and new projects acquired in 2013;3) 13 January2014: KPMG started to perform their annual audit in Vanke’s office. On 3 March, the first draft ofthe 2013 Auditor’s Report was presented to the audit committee for review; the Auditor’s Report was presented on5 March.ii. Review of not-yet audited financial statementsBefore the auditors came in, the audit committee had reviewed, with due diligence, the financial statementsprepared by the Company and provided their opinions in writing.
    II.      Audit processStarting from 13 January 2014, KPMG sent five different teams (for Guangshen Region, Shanghai Region,Beijing Region, Chengdu Region and the Group as a whole) to perform audit for the Company’s headquarter andits subsidiaries.During the auditing process, the audit committee supervised in writing and requested KPMG to arrange its auditwork according to the audit work schedule, in order to ensure that the audit completed on time.On 3 March 2014, KPMG submitted to the audit committee the drafts of 2013 Auditors’ Report and InternalControl Audit Report. On 5 March 2014, the Board meeting approved the financial statements and the workperformed by KPMG for the Company’s 2013 audit completed.III.  Audit resultsKPMG has issued its unqualified opinion for the 2013 Auditors’ Report and Internal Control Audit Report.The audit committee is of the opinion that the audit performance of KPMG Huazhen (Special General Partnership)on the Company’s 2013 financial statements is satisfactory.The audit committee resolved to propose to the Board for approval of the reappointment ofKPMGHuazhen(Special General Partnership) to audit the Company’s 2013financial statements according to thePRC and international accounting standards, and to prepare the internal control audit report according to therequirements of the regulatory bodies.B. Remuneration and nomination committee’s performance of dutiesDuring the year under review, the remuneration and nomination committee held two meetings and conducted onevoting by electronic communication. The committee had reviewed the resolutions including minor adjustment tothe Company’s incentive scheme and the appointment of Chen Wei as executive vice president, and deliberated onthe remuneration and incentive programmes for senior management. Since 2014, the remuneration andnomination committee had held one meeting for the discussion about the candidates for a new board of directors,directors and officers’ liability insurance, adjustment to economic profits-bonus plan. The committee hadmaintained regular contact with the management and held several debriefing sessions where the managementreported their work.C. Investment and decision-making committee’s performance of dutiesDuring the year under review, the investment and decision-making committee held one meeting for the discussionof the Board’s authorization of project development and financing, as well as cooperation with CRH. Theinvestment and decision-making committee had maintained regular contact with the management, thereby havingfull understanding of different business activities carried out under the scope of authorisation.
                                                     Page 489. Profit Appropriation and Dividend Distribution ProposalThe Company’s profit appropriation and dividend distribution was based on the Company’s profit available forappropriation. Details on the profit available for appropriation of the Group and the Company in 2013 accordingto the PRC Accounting Standards for Business Enterprises are as follows:
                                                                                                        Unit: RMB
                                                         The Group                The Company
                     Profit after taxation
                     available for                        39,825,247,201.93         8,090,250,689.93
                     appropriation
                      Include: Net profit for
                                                          15,118,549,405.78         7,795,895,844.62
                     2013
                     Profit available for
                     appropriation at the                 26,688,098,566.77         2,275,755,615.93
                     beginning of the year
                     Allocation of dividend
                                                          (1,981,400,770.62)       (1,981,400,770.62)
                     for 2012Note: The significant difference between the profit of the Company and the consolidated profit of the Group isattributable to the cost method used for recording investment in subsidiaries after the adoption of ―AccountingStandards for Business Enterprises 2006‖. Moreover, the appropriations made by the subsidiaries’ legal persons tosurplus reserve according to the Company Law were retained in the subsidiaries, and the subsidiaries’ profit for the yearhas yet to be appropriated to the Company.According to the relevant rules and requirements of the Company’s Articles of Association, and consideringshareholders’ interests and the Company’s development needs in the long run after hearing different shareholders’opinions, the Board submitted to the shareholder meeting the following profit appropriation proposal for the year2013:1. to appropriate 10% of the net profit of the Company to statutory surplus reserve;2. to appropriate 30% of the net profit of the Company to discretionary surplus reserve;3. to appropriate 60% of the net profit of the Company and the unappropriated profit of the previous year fordividend distribution fund;The allocation of the profit available for appropriation for the year 2013 is as follows:
                                                                                                   Unit: RMB
                                                                                             As a percentage
                                                                    As a percentage of
                                                                                              of the Group’s
                                           The Company              the Company’s net
                                                                                             consolidated net
                                                                     profit for the year
                                                                                            profit for the year
           Net profit of 2013                    7,795,895,844.62                  100%                 51.57%
             Transfer to
             statutory surplus                    779,589,584.46                    10%                  5.16%
             reserve
             Transfer to
             discretionary                       2,338,768,753.39                   30%                 15.47%
             surplus reserve
             Transfer to
             2013dividend                        4,677,537,506.77                   60%                 30.94%
             distribution fund
           Profit available for
           appropriation at the
                                                  294,354,845.31                       0                      0
           beginning of the
           year
             Distribution of
                                                 4,516,137,256.79                57.93%                 29.87%
             cash dividend for
                                                        Page 49
                2013*
             Retained profit for
             appropriation for the
                                                      455,755,095.29                        -                      -
             following financial
             year*Calculated based on the total number of shares of the Company at the end of 2013The Company’s 2013 dividend distribution proposal: Based on the number of shares on the record date fordividend distribution, a cash dividend of RMB4.1 (including tax) will be distributed for every 10 existing sharesheld.Based on the Company’s total number of shares of 11,014,968,919at the end of 2013, the total amount of cashdividends for distribution for 2013 will be RMB4,516,137,256.79.In future, the Company intends to steadily raise its dividend payout ratio from the current year’s 29.87%.The independent directors were of the view that the preparation of the Company’s proposals on the profitappropriation and dividend distribution for the year 2013 was in compliance with the Company’s Articles ofAssociation and the relevant requirements, and took into account the interests of various types of shareholders.The independent directors unanimously agreed to submit the relevant proposals to the shareholder meeting forconsideration.The Company’s proposal on dividend distribution for the past three years:
                Year                            Proposal on dividend distribution
                          Based on the number of shares on the record date for dividend distribution, a
                2012      cash dividend of RMB1.8 (including tax) would be distributed for every 10
                          existing shares held.
                          Based on the number of shares on the record date for dividend distribution, a
                2011      cash dividend of RMB1.3 (including tax) would be distributed for every 10
                          existing shares held.
                          Based on the number of shares on the record date for dividend distribution, a
                2010      cash dividend of RMB1.0 (including tax) would be distributed for every 10
                          existing shares held.The Company’s distribution of cash dividends for the past three years:
                                                                                                                      Unit: RMB
                                                                                                                 The Group’s
                                                                         As a percentage As a percentage of
                                                       The Group’s                                           consolidated profit
            Cash dividend     The Company’s net                              of the        the Group’s
    Year                                                consolidated net                                            available for
            (including tax)         profit                               Company’s net   consolidated net
                                                          profit                                               appropriation for
                                                                              profit           profit
                                                                                                                   the year
    2012       1,981,400,770.62 5,613,873,212.56       12,551,182,392.23          35.29%               15.79%     30,056,422,494.32
    2011       1,429,377,328.34 4,372,887,322.93        9,624,875,268.23          32.69%               14.85%     21,995,638,556.48
    2010       1,099,521,021.80 3,083,108,153.24        7,283,127,039.15          35.66%               15.10%     15,321,861,067.94
        Accumulated cash dividends in the past 3 years as a percentage to the Group’s
                                                                                                        45.93%
                     average consolidated net profitsin the past three years10. Selected Media for Disclosure of InformationThe Company has chosen China Securities Journal, Securities Times, Shanghai Securities News, Securities Dailyand an English publication in Hong Kong as media for disclosure of information.V. Significant Events1. Material Litigation and ArbitrationDuring the year under review, the Company did not involve in any material litigation or arbitration.
                                                            Page 502. Major Acquisition and Disposal of AssetsDuring the year under review, the Company did not have any major acquisition or disposal of assets.3. Major Connected TransactionsOn 11 May 2012, the Company’s 2011 annual general meetingresolved to authorise the Board to decide on, withinRMB10.59 billion, the continuous cooperation with China Resources (Holdings) Co., Ltd and its connectedcompanies (collectively ―CRH‖), including entering into a loan agreement with China Resources Bank of ZhuhaiCo., Ltd., using the funds under China Resources SZITIC Trust Co., Ltd. and Harvest Capital Partners Limited,and joint investment with China Resources SZITIC Trust Co., Ltd. and Harvest Capital Partners Limited. Thevalidty of the authorization isone year.During the year under review, Shanghai Vanke Investment Management Co., Ltd. (―Shanghai Vanke Investment‖),a wholly-owned subsidiary of the Company, transferred 39% equity interests of Shanghai Hongqiao Project No.11 to Shenzhen Huawei Xincheng No. 1 Partnership Enterprise (limited partnership) (深圳市華威欣城一號投资合伙企业) (―Huawei Xincheng‖) to satisfy the development needs ofShanghai Hongqiao Project No. 11. Bothparties would jointly develop Shanghai Hongqiao Project No. 11. Harvest Capital Partners Limited and ChinaResources SZITIC Trust Co., Ltd. respectively hold 51% and 49% equity interests in Shenzhen HuaweiYongsheng Management Co., Ltd. (深圳市華威永盛企業管理有限公司), which is a general partner of HuaweiXincheng.On 20 March 2013, the Company’s 2012annual general meeting resolved to authorise the Board to decide onthecontinuous cooperation with CRH. The validity of the authorization was adjusted to two years, while theaggregate authorised amount was adjusted to no more than RMB12.7 billion per year (i.e. not more than 20% ofthe Company’s audited net assets value as at the end of 2012). During the year under review, no new cooperativeprojects under the scope of authorisation were implemented.The cooperation with CRH will help fully leverage CRH’s financial strengths and platform, which will helpbroaden the Company’s financing channels, strengthen its ability to avert risk and enhance return on assets.4.A-share Stock Option Incentive Scheme(1) Relevant procedures and progress of the implementation of the A-Share Stock Option Incentive SchemeAfter filing with China Securities Regulatory Commission without objection, the A-Share Stock Option IncentiveScheme of China Vanke Co., Ltd. (Revised Draft) (the ―Scheme‖) was passed at the first extraordinary generalmeeting of the Company in 2011 on 8 April 2011. Implementation of the Scheme thus commenced.The A-Share Stock Option Incentive Scheme uses stock option as an incentive instrument. Each stock optionconfers the right to purchase one A-share of Vanke at the exercise price within the exercise period under the A-Share Stock Option Incentive Scheme. The underlying shares of the stock options are new shares issued by theCompany to the beneficiaries. When the Company and the beneficiaries of the Scheme fulfil the conditions forgranting the options, the Company will grant stock options to the beneficiaries according to the Scheme. No stockoptions should be exercised during the vesting period, which is one year from the grant date. Thereafter, thegranted stock optionscan be exercisable in three exercise periods. 40% of the options granted shall be exercisableduring the first exercise period, another 30% and the remaining 30% shall be exercisable in the second and thirdexercise periods respectively. The right to exercise the stock options in each corresponding exercise period issubject to the fulfilment of the vesting conditions by the Company and the beneficiaries of the Scheme. The stockoptions will lapse if they fail to vest because the performance targets are not achieved and if they are notexercisedafter the expiry of the exercise periods.The second meeting of the sixteenth session of the Board of the Company held on 18 April 2011 confirmed thefulfilment of the conditions for granting thestock options under the A-share Stock Option Incentive Scheme, anddetermined 25 April 2011 as the grant date of stock options. The seventh Supervisory Committee of theCompanyhad verified and given its opinion on the list of beneficiaries of the Scheme.On 9 May 2011, theregistration of the grant of stock options was completed. The Company granted an aggregate of 108,435,000 stockoptions to 810 beneficiaries. The abbreviation of the stock options granted under the Scheme is VankeJLC1, andthe stock option code is 037015.(2) Adjustment of exercise price of stock options and the implementation procedures of the A-Share StockOptions Incentive Scheme
                                                     Page 51The initial exercise price of the stock options under the A-Share Stock Options Incentive Scheme was RMB8.89,which was subject to adjustment according to the relevant requirements of the Scheme should distribution ofdividends, transfer of capital surplus reserve to share capital or other conditions occur within the validity period ofstock options.On 27 May 2011 the Company implemented the proposal on dividend distribution for the year 2010. A cashdividend of RMB1 (including tax) would be paid to all the shareholders on the basis of every 10 existing sharesheld. Pursuant to the authority granted by the first extraordinary general meeting in 2011, the Board resolved toadjust the exercise price of the stock options to RMB8.79.On 5 July 2012, the Company implemented the proposal on dividend distribution for year 2011, and distributed acash dividend of RMB1.3 (including tax) to all shareholders for every 10 existing shares held. Pursuant to theauthority granted by the first extraordinary general meeting in 2011, the Board resolved to make correspondingadjustment to the exercise price of the A-share stock options. The adjusted exercise price was RMB8.66.On 16 May 2013, the Company implemented the proposal on dividend distribution for the year 2012, anddistributed a cash dividend of RMB1.8 (including tax) to all shareholders for every 10 existing shares held.Pursuant to the authority granted by the first extraordinary general meeting in 2011, the Board resolved to makecorresponding adjustment of the exercise price of the A-share stock options. The adjusted exercise price wasRMB8.48.(3) Exercise of stock options under the A-Share Stock Option Incentive Scheme during the year underreviewPursuant to the authority granted by the first extraordinary general meeting in 2011, the Board confirmed thefulfilment of the vesting conditions for the first and second exercise periods for the Company’s A-Share StockOption Incentive Scheme. Under the Company’s stock option incentive scheme, beneficiaries make their owndecisions with respect to the exercising of their stock options. On 12 July 2012, the first exercise period of theStock Option Incentive Scheme commenced. The beneficiaries of the Scheme could exercise 40% of their optionsduring the exercisable period between 12 July 2012 and 24 April 2014. On 29 May 2013, the second exerciseperiod of the Stock Option Incentive Scheme commenced. The beneficiaries of the Scheme could exercise 30% oftheir options during the period between 29 May 2013 and 24 April 2015.During the year under review, a total of 19,415,801 stock options were exercised, resulting in a correspondingincrease of 19,415,801 A shares of the Company. On the other hand, 2,813,112 stock options were cancelled dueto the resignation of certain beneficiaries. As at the end of the year under review, there were 70,938,299 stockoptions granted but not yet exercised.(4) Impact of implementation of the A-Share Stock Option Incentive Scheme on the financial position andoperating results in the year under review and subsequent yearsThe introduction of the A-Share Stock Option Incentive Scheme will fill the gap in the Company’s long-termincentive instruments, while establishing a check-and-balance mechanism between shareholders and professionalmanagement team through linking up their interests. The Scheme will further improve the Company’s corporategovernance structure and strengthen the Company’s competitiveness.Accounting treatments for the A-Share Stock Option Incentive Scheme as equity-settled share-based payment arecarried out in accordance with the ―Accounting Standard for Business Enterprises No. 11 – Share-based payment‖.On each balance sheet date within the vesting period, the Company shall include, based on the best estimate of thenumber of vested stock options, the services obtained from the beneficiaries duringthe period in the costs andexpenses as well as in the capital surplus reserves at the fair value of the stock options on the grant date. Duringthe exercise period of the stock options, the Company shall make no adjustment to the relevant costs, expenses orthe capital surplus reserves which have been recognised. On each balance sheet date, based on the actual numberof options exercised, the capital surplus reserves recognised shall be settled.A-Share Stock Option Incentive Scheme adopts Binomial option pricing model to estimate the fair value of thestock options on the grant date. According to the assessment results, the fair value of the stock optionsin the firstexercise period is RMB88,790,000, the fair value of the stock optionsin the second exercise period isRMB94,280,000, while the fair value of the stock optionsin the third exercise period is RMB110,980,000.
                                                       Page 52
      During the year under review, according to the straight-line method, the cost of stock options of RMB35.81
      million amortised by the Company for the first, second and third exercise periodswas included in the costs and
      expenses, while the Company’s capital surplus reserves increased by RMB35.81 million. Please refer to the notes
      to the financial statements for details on the accounting treatments.
      For details, please refer to the announcements published on China Securities Journal,Securities Times, Shanghai
      Securities News and www.cninfo.com.cn on 23 March 2013, 9 April 2013, 20 April 2013, 10 May 2013, 21 May
      2013, and 12 July 2012 respectively.
      5.Change of listing location of the Company’s B shares for listing on the main board of SEHK by way of
      introduction
      On 19 January 2013, the Company announced the proposal on the change of listing location of China Vanke Co.,
      Ltd.’s domestically listed foreign shares for listing and trading on the main board of The Stock Exchange of Hong
      Kong Limited by way of introduction. The proposal was approved at the Company’s 2013 first extraordinary
      general meeting on 4 February. With regard to the application for the proposed change, the Company obtained a
      confirmation letter on 7 February regarding the processing of the application for administrative licence issued by
      China Securities Regulatory Commission. On 15 February, the Company received a confirmation letter from the
      SEHK. The relevant applicationsare still under review.On 3 March 2014, the Company received the ―Reply
      regarding approval of China Vanke Co., Ltd’s listing on the main board of The Stock Exchange of Hong Kong
      Limited‖ (Zhengjian Xu Ke [2014] No. 239)issued by China Securities Regulatory Commission (―CSRC‖). CSRC
      approved the Company’s conversion of its B shares to overseas listed foreign shares for listing on the main board
      of The Stock Exchange of Hong Kong Limited.
      The change of listing location of the Company’s B shares to the main board of SEHK is conducive to enhance the
      Company’s international reputation, and enable the Company to leverage overseas resources and markets to
      strengthen its core competitiveness.
      6. Major contracts and their Implementation
      (1)During the year under review, the Company was not subject to any material entrustment, sub-contracting or
      leasing arrangements involving assets of other companies, nor were any other companies entitled to any
      entrustment, sub-contracting or leasing arrangements involving assets of the Company.
      (2) Details on the new guarantees made by the Company during the year under review are as follows:
    No        Guarantor                Principal of the
         (% of equity          guarantee(% of equity        Guarantee                                        Guarantee
                                                                           Details of the guarantee                           Remarks
       interest held by        interest held by Vanke)       Amount                                           Period
           Vanke)
                                                                           Provided a guarantee for a     From 11 January     Discharged
                               Dongguan Xinwan Real
    Shenzhen Vanke Real                                  RMB25.5          bank loan of RMB50             2013 to 11January
    1                              Estate Development Co.,
    Estate Co., Ltd. (100%)                              million          million in proportion to the   2015
                               Ltd. (51%)
                                                                           Company’s equity holding
                                                                           Provided a guarantee for a     From 16 January
    Guangzhou Vanke Real      Guangzhou WanshangReal     RMB11.22         bank loan of RMB34             2013 to 5December2
    Estate Co., Ltd. (100%)   Estate Co., Ltd. (33%)     million          million in proportion to the   2015
                                                                           Company’s equity holding
                               Ningbo Zhongwan                             Provided a guarantee for a     From 25 January
                               Property Co., Ltd (49%                      bank loan of RMB2.5            2013 to 5December
    Ningbo Vanke Real
                               held by Vanke, 15% of                       million in proportion to the   2014
    3    Estate    Development                                RMB375,000
                               which were held through                     Company’s equity holding
    Ltd. (100%)
                               Ningbo Vanke Real Estate
                               Development Ltd)
                               Beijing Uni-construction                    Provided a guarantee for a     From 17 May 2013
    Beijing         Vanke
                               Vanke Real Estate                           loan of RMB1billion in         to 17May 2016
    4    Company        Limited                               RMB500 million
                               Development Co., Ltd.                       proportion      to      the
    (100%)
                               (50%)                                       Company’s equity holding
                                                               Page 53
                                                                                                                                 The
                                                                                                                                 guarantee
                                                                                                                                 obligations
                                                                                                                                 undertaken
                                                                                                                                 by       the
                                                                                                                                 original
                                                                            Provided a guarantee for a
    Beijing         Vanke     Beijing Kaide Xinming                                                       From 30 September     shareholder
                                                                            loan of RMB207million in
    5    Company        Limited    Real Estate Development     RMB207 million                                  2011     to    30     of       the
                                                                            proportion      to      the
    (100%)                    Co., Ltd. (100%)                                                            September 2013        principal
                                                                            Company’s equity holding
                                                                                                                                 and
                                                                                                                                 continued
                                                                                                                                 by       the
                                                                                                                                 Company
                                                                                                                                 now
                                                                                                                                 discharged
    Vanke Real Estate         Bestgain Real Estate                         Provided a guarantee for the   From 13 March
                                                           US$894.50
    6    (Hong Kong) Company       (Hong Kong)                                  principal and interest of      2013 to 13 March
                                                           million
    Limited (100%)            Limited(100%)                                US$800 million bonds           2018
                                                                                                                                 As at the
                                                                                                                                 end of the
                                                                                                                                 year under
    Vanke Property                                                         Provided a guarantee for a     From 28 March         review,
                               WK Property Financial       HK$521.5
    7    (Overseas) Limited                                                     bank credit line of HK$600     2013     to   28      actual loan
                               Limited(75%)                million
    (75%)                                                                  million                        December 2015         amounted
                                                                                                                                 to
                                                                                                                                 HK$521.5
                                                                                                                                 million
                                                                                                           From 16 April 2013
    Vanke Property (Hong                                                   Provided a guarantee for a     to withdrawal from
                               Wkdeveloper Sig I Private   SGD135.51
    8    Kong) Company                                                          transaction amount of          the project or
                               Limited (100%)              million
    Limited (100%)                                                         SGD135.51 million              liquidation date of
                                                                                                           the project
                                                                                                                                 As at the
                                                                                                                                 end of the
                                                                                                                                 year under
                                                                                                                                 review,
    Vanke Properties (Hong                                                 Provided a guarantee for a     From 4 January        new
                               Glorious Pacific Limited    RMB9.14
    9    Kong) Company                                                          bank credit line of            2012 to 4 January     additional
                               (太荣有限公司)(100%)      million
    (100%)                                                               RMB206.78 million              2014                  loan
                                                                                                                                 amounted
                                                                                                                                 to
                                                                                                                                 RMB9.14
                                                                                                                                 million
    Vanke Real Estate         City Choice Limited (邦才   US$300 million                                  From 12 September
                                                                            Provided a guarantee for a
    10   (Hong Kong) Company                                   +HK$585                                         2013 to 12 March
                               有限公司)                                    bank loan of US$375million
    Limited (100%)                                        million                                         2017
    Vanke Real Estate                                                      Provided a guarantee for the   From 6 November
                               Bestgain Real Estate Lyra   SGD158.34
    11   (Hong Kong) Company                                                    principal and interest of      2013 to 6 November
                               Limited (100%)              million
    Limited (100%)                                                         SGD140 million bonds           2017
    Vanke Real Estate                                                      Provided a guarantee for the   From 4 December
                               Bestgain Real Estate Lyra   RMB1,225
    12   (Hong Kong) Company                                                    principal and interest of      2013 to 4 December
                               Limited (100%)              million
    Limited (100%)                                                         RMB1,000 million bonds         2018
                                                                            Provided a guarantee for a
                               Shenzhen Vanke Binhai                                                       From 6 December
    Shenzhen Vanke Real                                                    bank loan of RMB100
    13                             Real Estate Co., Ltd.       RMB50 million                                   2013 to 5 December
    Estate Co., Ltd. (100%)                                                million in proportion to the
                               (50%)                                                                       2016
                                                                            Company’s equity holding
    Vanke Real Estate                                                      Provided a guarantee for the   From 16 December
                               Bestgain Real Estate Lyra   RMB1,121.5
    14   (Hong Kong) Company                                                    principal and interest of      2013 to 16
                               Limited (100%)              million
    Limited (100%)                                                         RMB1,000 million bonds         December 2016
                                                                            Provided a guarantee for a
                               Vanke Qianhai Mansion                                                       From 16 December
    Shenzhen Vanke Real                                                    bank loan of RMB480
    15                             Development Management      RMB480 million                                  2013 to 16
    Estate Co., Ltd. (100%)                                                million in proportion to the
                               Co., Ltd. (100%)                                                            December 2016
                                                                            Company’s equity holding
      During the year under review, new guarantees (including counter guarantees) provided by the Company and its
      majority-owned subsidiaries amounted to RMB13,188 million, and the amount of guarantees discharged was
      RMB10,002 million. As at the end of the year under review, the outstanding amount of guarantees provided by the
      Company was RMB14,320 million, accounting for 18.62% of the equity attributable to shareholders of the
                                                                Page 54
    Company as at the end of 2013. The outstanding amount of guarantees provided by the Company and its majority-
    owned subsidiaries for other majority-owned subsidiaries was RMB14,174million, while the outstanding amount
    of guarantees provided by the Company and its majority-owned subsidiaries for associated and joint venture
    companies was RMB146 million.
    During the year under review, the Company did not provide guarantee to shareholders,de facto controller and its
    connected parties.
    (3) During the year under review, the Company did not have any entrustment of financial management.
    (4) For details on the projects acquired by the Company during the year under review, please refer to ―Project
    investment‖ under the ―Use of capital not from the capital market‖ section.
    7. Specific elaboration and independent opinions of the independent directors on the use of capitalby
    connected parties and external guaranteesprovided by the Company
    There had been no non-operational use of capital by the controlling shareholder or other connected parties of the
    Company.
    During the year under review, the Company, in strict compliance with the related rules, regulated its external
    guarantee activities in order to control risks. There was no violation against the ―Notice regarding the regulation
    of external guarantees by listed companies‖. The Company’s guarantees had been made to meet its production and
    operational needs and the requirements for reasonable use of capital. The procedures for determining the provision
    of guarantees are legal and reasonable, without prejudice to the interests of the Company and its shareholders.
    8.Implementation of the undertakings given by the Company or shareholders holding 5% or more of the
    equity interests in the Company
    China Resources National Corporation (―CRNC‖), the parent company of China Resources Co., Limited (―CRC‖),
    being the Company’s original single largest shareholder and the present single largest shareholder, gave a
    significant undertaking to the Company in 2001: CRNC would provide as much support to the Company as it did
    in the past, as long as such support was beneficial to the Company’s development, and that it would remain
    impartial in the event of any horizontal competition between the investment projects of the Company and that of
    CRNC and its subsidiaries, and in the event of any disagreements or disputes arising from horizontal competition.
    CRNC had fulfilled its undertaking.
    9. Details on the Company’s investor relations activities
    In 2013, the Company maintained close contact with its investors. During the year, the Company received around
    570 investor visits, participated in 69 large-scale investor meetings organized by both domestic and international
    corporations. The Company also organised four investor meetings and three online presentations. In addition, via
    telephone, e-mail and the Internet, the Company communicated with and gathered opinions from investors,
    disseminated information about the Company, thereby maintaining long-term trust between the Company and its
    investors.
    In 2013, the Company was enlisted among Forbes’ ranking of Asia-Pacific’s Best 50 Biggest Listed Companies,
    and received the 2013 Top 100 Brand Capital Value award from China Center for Market Value Management of
    Listed Companies. The Company’s secretary to the Board received the 9th Session of the Gold Medal Secretary to
    the Board Award from ―New Fortune‖, the Golden Bull Award for the Best Secretary to the Board from China
    Securities Journal, the Most Innovative Secretary to the Board Award of the Ninth Session of the Gold Roundtable
    Awards from ―Directors & Boards‖, and the title of 2013 Best Secretary to the Board of Listed Companies in
    China from Moneyweek.
    Details on the Company’s investor meetings in 2013 are set out as follows:
                                                                                                                   Issues discussed
    Type of meeting   Date          Location        Approach                      Types of investors                  and information
                                                                                                                       provided
    BNP meeting      2013.1       Hong Kong          Face to     Investors including securities companies, funds,   (I) Major issues
                                                            Page 55
                                                     Face       etc                                                    discussed:
    Nomura Securities                                   Face to                                                            (1) The
                    2013.1       Hong Kong                      Investors including securities companies, funds, etc   Company’s
    meeting                                          Face
                                                                                                                       daily
    Credit Suisse                                     Face to                                                            operations;
                    2013.1       Hong Kong                      Investors including securities companies, funds, etc
    meeting                                          Face                                                              (2)The
                                                    Face to                                                            Company’s
    Barclaysmeeting     2013.1       Hong Kong                      Investors including securities companies, funds, etc   development
                                                     Face
                                                                                                                       strategies;
    Guotai                                         Face to
                    2013.1        Shenzhen                      Investors including securities companies, funds, etc   (3)The
    Junanmeeting                                       Face                                                              Company’s
                                                    Face to                                                            opinion on the
    CLSAmeeting        2013.1       Hong Kong                      Investors including securities companies, funds, etc
                                                     Face                                                              changes in the
                                 Hong Kong,                                                                            industry.
    Annual results                                     Face to     Investors including securities companies, funds,       (II) Major
                    2013.2        Shenzhen
    presentation                                       Face       individual investors, etc                              information
                             (Shanghai,Beijing)
                                                                                                                       provided:
                                                    Face to                                                            Published
    CLSAmeeting        2013.2       Hong Kong                      Investors including securities companies, funds, etc
                                                     Face                                                              information
    Credit Suisse                                     Face to                                                            including the
                    2013.3       Hong Kong                      Investors including securities companies, funds, etc   Company’s
    meeting                                          Face
                                                                                                                       regular reports.
       JP                                           Face to
                    2013.3       Hong Kong                      Investors including securities companies, funds, etc
    Morganmeeting                                       Face
                                                    Face to
    CLSAmeeting        2013.3       Hong Kong                      Investors including securities companies, funds, etc
                                                     Face
                                                    Face to
    Barclaysmeeting     2013.3       Hong Kong                      Investors including securities companies, funds, etc
                                                     Face
    Credit Suisse                                     Face to
                    2013.3       Hong Kong                      Investors including securities companies, funds, etc
    meeting                                          Face
                                                    Face to
    SWSmeeting        2013.3        Shenzhen                      Investors including securities companies, funds, etc
                                                     Face
                                                    Face to
    CICCmeeting       2013.4         Beijing                      Investors including securities companies, funds, etc
                                                     Face
    DBS Vickers                                       Face to
                    2013.4       Hong Kong                      Investors including securities companies, funds, etc
    meeting                                           Face
                         &